Bank Indonesia: Retail Sales Increase In December 2021 Due To Christmas And New Year

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - Bank Indonesia (BI) estimates that retail sales performance will increase throughout December 2021 driven by increased demand during the Christmas and year-end holidays.

Head of the BI Communications Department Erwin Haryono said the projection was reflected in the December 2021 Real Sales Index (IPR) of 206.9 or a monthly growth of 3.0 percent.

"The increase in retail sales occurred in the group of cultural and recreational goods, information and communication equipment and the clothing subgroup," he said in a press statement, Tuesday, January 11.

According to Erwin, annual retail sales in December 2021 are estimated to grow 8.9 percent (year-on-year/yoy), mainly driven by the sales performance of the automotive fuel group, which recorded the highest growth.

In the previous period, namely November 2021, retail sales performance was supported by sales in the spare parts and accessories group as well as food, beverages and tobacco which increased. Meanwhile, sales growth in the clothing and motor vehicle fuel sub-groups recorded a slowdown.

"In terms of prices, respondents estimate that inflationary pressure will be stronger in February and May 2022," Erwin continued.

Meanwhile, the General Price Expectation Index (IEH) for February and May 2022 was 129.7 and 140.0, respectively, higher than 125.5 and 134.3 in the previous month. Respondents stated that the price increase was driven by seasonal factors such as Chinese New Year and Eid al-Fitr as well as indications of an increase in raw material prices.