Indonesia retail sales bounce back
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Indonesia’s retail sales grew by a surprisingly high 10.4 per cent in January, fueled by sales of IT and communication equipment, food and beverages.
Bank of Indonesia data released Tuesday showed the growth considerably higher than December’s 3.3 per cent, which was revised down from an early indicated 4.3 per cent.
The bank collates figures from a sample of 650 retailers in 10 major Indonesian cities to create monthly trend data.
The retailers also collectively predicted strong growth would continue in February and that inflationary pressure would ease due to smoother distribution. Fuel prices have also fallen and individual spending power was on the rise.
While the growth was higher, it is still below the 11.4 per cent of November and the 17.6 per cent of October, but ahead of September’s 8.9 per cent.
Questions & Answers
Q.What specifically drove the increase in retail sales in January?
What specifically drove the increase in retail sales in January?
The notable rise in retail sales for January was primarily fuelled by strong sales of IT and communication equipment. Food and beverages also contributed significantly to this growth across the sampled retailers.
Q.How did January's retail sales growth compare to previous months?
How did January's retail sales growth compare to previous months?
January's 10.4 per cent growth was higher than December's revised 3.3 per cent and September's 8.9 per cent. However, it remained below the 11.4 per cent recorded in November and October's 17.6 per cent.
Q.What factors are expected to influence retail sales and inflation in the near future?
What factors are expected to influence retail sales and inflation in the near future?
Retailers anticipate continued strong growth into February. They also predict that inflationary pressure will ease due to smoother distribution, coupled with falling fuel prices and increasing individual spending power.
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