Retail Sales In June 2023 Not Shifting From The Contraction Zone, Is The Economy Still Suram?

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA Bank Indonesia (BI) reports that the monthly retail sales performance (month to month/mtm) is still in the contraction zone of minus 0.1 percent in June 2023. This result extends the previously occurring trend with minus 8.0 percent in May 2023.

Head of the BI Communications Department Erwin Haryono said, although it had not shifted from the pressure area, improvements were shown by the sales sector of clothing subgroups, household appliances, as well as cultural and recreational goods.

"In addition, the increase is also shown by the sale of motorized vehicle fuel in line with the school holiday period, National Religious Holidays (HBKN) and collective leave," he said in a written statement, Wednesday, July 12.

Erwin added, if viewed on an annual basis or year on year (yoy), retail sales grew positively 8.0 percent last month compared to May 2023 which was minus 4.5 percent.

"The increase was driven by the improvement in the growth of food, beverage, and tobacco groups and motorized vehicle fuels, which in the previous month were in the contraction phase, as well as the clothing subgroup which continued a positive growth trend," he said.

In terms of price, the BI study found that inflationary pressures would decrease in August 2023, but are expected to increase in November 2023.

Erwin revealed that the General Price Expectation Index (IEH) in August 2023 was recorded at 117.7, lower than the previous period of 118.5. Meanwhile, the IEH of November 2023 was recorded at 123.0, higher than the previous period of 121.6.

"The price pressure is maintained, supported by the availability of supplies and smooth distribution of goods," concluded Erwin.