Wow, The End Of Eid Plus The COVID-19 Explosion Makes Retail Sales Even More Dragging

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA – Bank Indonesia (BI) reported that based on the results of a survey on retail sales performance on an annual basis, growth slowed down in June 2021.

Head of the BI Communications Department Erwin Haryono said this was reflected in the June 2021 real sales index (IPR) of 202.3 or an annual growth estimated at 4.5 percent (year-on-year/yoy), not as high as the growth of 14.7. percent yoy in May 2021.

"The majority of groups recorded a slowdown, especially the spare parts and accessories group, and the food, beverage and tobacco group, while sales of the information and communication equipment group as well as the cultural and recreational goods group experienced contraction," he said in a press statement as quoted on Saturday, 10 July.

Erwin added that monthly retail sales in June 2021 are estimated to contract by minus 11.1 percent (month-to-month/mtm).

"Respondents stated that the decline was in line with the return to normal consumption after Eid, especially in the clothing and food, beverage and tobacco subgroups," he said.

Meanwhile, in the May 2021 period, respondents indicated that retail sales performance both monthly and annually recorded positive growth.

IPR in May 2021 grew 3.2 percent mtm and 14.7 percent yoy, although not April 2021 with 17.3 percent mtm and 15.6 percent yoy.

"Respondents said that the slowdown in retail sales performance was mainly caused by restrictions on mobility in line with the increasing control of COVID-19," he said.

In terms of prices, respondents estimate that inflationary pressure in the next 3 and 6 months (August and November) is expected to slow down.

“The General Price Expectation Index (IEH) for the next 3 months (August) is 124.4, a decrease from the previous month, supported by smoother distribution of goods. Meanwhile, the IEH for the next 6 months (November) is 119.9, lower than the achievement in the previous month of 134.0, supported by smooth distribution of goods and sufficient supply," concluded Erwin.