Bank Indonesia: Retail Sales Rise During Ramadan, Most Household Equipment

Illustration (Photo: Doc. Antara)

JAKARTA – A Bank Indonesia (BI) survey revealed that retail sales performance in May 2022 grew positively as reflected in the Real Sales Index (IPR) of 239.7 or 0.2% on a monthly basis and 5.4 percent on an annual basis.

Head of the Communications Department Erwin Haryono said that the increase occurred in other household equipment groups in line with community demand which was still strong.

"On an annual basis, sales of the motor vehicle fuel group, as well as the food, beverage and tobacco group are expected to continue to grow positively," he said in an official statement on Friday, June 10.

According to Erwin, in the period of April 2022 the results of the Retail Sales Survey (SPE) indicated that retail sales performance had increased.

"IPR April 2022 was recorded at 239.2 or grew 16.5 percent month to month (mtm), higher than the growth in the previous month which was 2.6 percent," he said.

Erwin explained that the increase occurred in several groups, namely the clothing subgroup, food, beverage and tobacco group, as well as information and communication equipment.

"The increase was driven by an increase in community economic activity during the Ramadan period and ahead of Eid," he said.

He also revealed that on an annual basis, retail sales continued to grow at a high rate of 8.5 percent year on year (yoy), although not as high as the previous month's growth of 9.3 percent.

"The continued high retail sales were mainly supported by increased sales of the clothing sub-group, as well as improved sales of the information and communication equipment group, and other household equipment," Erwin continued.

Meanwhile, in terms of prices, respondents predict that inflationary pressures in July and October 2022 will increase. The General Price Expectation Index (IEH) for July and October was recorded at 141.7 and 137.5, respectively, or an increase from 135.6 and 129.8 in the previous month.

"This is in line with the increase in raw material prices, accompanied by an increase in fuel prices and respondents' estimates of the occurrence of problems in the distribution of goods," concluded Erwin.