XINHUA – Retail sales in Indonesia grew at a slower pace in November last year but were predicted to rise in December, according to a survey released by Bank Indonesia yesterday.
Retail sales grew 0.9 per cent year-on-year in November, down from 1.5 per cent in October.
The slower growth in November was attributed to reduced purchases of cultural and recreational goods, automotive spare parts and accessories, food and beverages.
“The decline in purchases was driven by weather conditions that restricted community activities and dampened demand,” the survey noted.
However, retail sales in December were expected to rebound, driven by an increase in purchases of automotive spare parts and accessories, food and beverages. Retail sales were forecast to grow by 1.0 per cent in December, surpassing the 0.9 per cent growth recorded in November.
Price pressures were predicted to rise over the next three months and ease over the subsequent three months.
In February, the index of price expectations was projected to reach 160.2, exceeding the three-year average index of 157.8 recorded in the three months leading up to the Islamic holy month of Ramadhan.
By May, the index of price expectations was expected to decline to 151.1, lower than the previous month’s average of 165.4, as prices gradually normalise after the Ramadhan period and the Islamic festivity of Eid al-Fitr. The survey included responses from 700 retailers across 10 major cities in Indonesia, including Jakarta, the country’s largest city.
