Indonesia recorded improvement in retail sales in November 2020: BI

Jakarta Monthly retail sales grew better in November 2020, supported by most goods groups, apparent from that month's Real Sales Index (IPR) that grew by -1.2 percent month-to-month (mtm), from -5.3 percent mtm in October 2020.

"Positive growth was clocked in most groups of goods, such as sales of clothing, fuel for motor vehicles, and spare parts and accessories," Executive Director of the Communication Department of Bank Indonesia (BI) Erwin Haryono stated in Jakarta, Tuesday.

Annually, the retail sales performance contracted in November 2020, with an IPR growth of -16.3 percent year-on-year (yoy), slightly deeper than -14.9 percent (yoy) in the previous month, chiefly swayed by the equipment group of information and communication as well as other household equipment.

Haryono noted that the monthly retail sales performance is projected to increase in December 2020. The IPR for December 2020 is forecast to grow by 2.9 percent mtm, driven by increased public demand during the Christmas and New Year 2021.

"All groups are predicted to experience positive growth, especially in the equipment group of information and communication as well as other household equipment," he noted.

Haryono remarked that on an annual basis, the retail sales performance in December 2020 is forecast to be in a contractionary phase, with an IPR growth of -20.7 percent yoy.

In terms of the prices, the inflationary pressure is forecast to rise in the next three months of 2021, while it will decline in the subsequent six months.

This indication of a hike in prices in February 2021 is reflected in the General Price Expectation Index (IEH) for the next three months of 150.4, higher than the previous month's figure of 139.8.

"The increase in prices is expected to be influenced by religious celebrations and distribution disruption due to unfavorable weather," he pointed out.

Meanwhile, Haryono noted that the IEH for the next six months had reached 161.7, lower than the previous month's 163.9, in line with the relatively maintained supply during Ramadan and Eid and supported by smooth distribution.

Source: Antara News

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