BI Expects Increasing Retail Sales in June 2023

Retail sales are expected to increase in June 2023.

IDXChannel - Retail sales are expected to increase in June 2023. The increase is driven by improving growth of Food, Beverages and Tobacco as well as Automotive Fuel, which experienced contractions in the previous period, 

According to Bank Indonesia (BI) Communication Department Executive Director Erwin Haryono, it is reflected by a Real Sales Index (RSI) of 223.2 with growth accelerating to 8.0% (yoy) after contracting 4.5% (yoy) the month earlier.

"On a monthly basis, respondents predict a shallower 0.1% (mtm) retail sales contraction in June 2023 compared with an 8.0% (mtm) contraction the month earlier on the back of improving Clothing sales and increasing retail sales of Other Household Equipment, Cultural and Recreational Goods as well as Automotive Fuel during the school holidays, national religious holidays and collectively leave days," Erwin said in a media release on Wednesday (12/7/2023).

In May 2023, the Real Sales Index (RSI) contracted 4.5% (yoy) to a level of 223.5. Respondents reported declining retail sales across most commodity groups, particularly Cultural and Recreational Goods, Food, Beverages and Tobacco as well as Other Household Equipment. 

On a monthly basis, retail sales recorded an 8.0% (mtm) contraction in the reporting period. Retailers confirmed broad-based declines across all commodity groups, particularly Clothing, Food, Beverages and Tobacco as well as Cultural and Recreational Goods as household consumption normalised after the Ramadan and Eid-ul-Fitr 1444 H festive period.

In terms of prices, respondents anticipate milder inflationary pressures in August 2023 before escalating in November 2023, as indicated by a decrease in the 3-month Price Expectations Index (PEI) to 117.7 from 118.5 and an increase in the 6-month PEI to 123.0 from 121.6. 

Price pressures will be alleviated by adequate supply availability and the smooth distribution of goods.(WHY)