Bank Indonesia Calls Retail Sales Performance To Stay Strong In August 2023

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) reports that the annual retail sales performance is expected to remain strong in August 2023.

Head of the BI Communications Department Erwin Haryono said this was reflected in the August 2023 Real Sales Index (IPR) of 204.4, or grew positively by 1.3 percent year on year (yoy).

"The strong retail sales performance is still driven by increased clothing subgroups, as well as improvements to motor vehicle fuel groups, other household appliances, other goods, as well as spare parts and accessories," he said in a written statement, Monday, September 11.

According to Erwin, monthly retail sales are estimated to grow positively by 0.5 percent month to month (mtm). This figure is better than the previous month which contracted by 8.8 percent.

"The development is mainly driven by food, beverage, and tobacco groups as well as increased spare parts and accessories, as well as other household appliances that remain strong in line with the increase in demand regarding the RI Anniversary event," he said.

Erwin explained, in July 2023 the IPR was recorded at 203.3 or on an annual basis, growing positively by 1.6 percent yoy. He said this development was supported by food, beverage and tobacco groups, as well as clothing subgroups that continued to grow positively.

On a monthly basis, retail sales experienced a growth contraction of 8.8 percent (mtm), especially from the contraction-added food, beverage and tobacco group, as well as the growing fuel group slowed down after the school holiday period and holiday with the National Religious Holidays (HBKN) Eid al-Adha 1444 H.

In terms of price, respondents estimate inflationary pressures in October 2023 and January 2024 will increase.

"The General Price Expectation Index (IEH) in October 2023 and January 2024 according to seasonal patterns, was recorded at 118.7 and 134.0, respectively, higher than the previous period which was 115.9 and 130," Erwin concluded.