Indonesia retail sales continue to slow
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Indonesia retail sales slowed to an ambulatory 4.3 per cent in December.
That’s well down on the 11.4 per cent of November, a figure revised down from an early projection of 14.1 per cent by the Bank of Indonesia.
The bank said the year-on-year growth rate slowed due to poor sales of household utensils, cultural and recreational goods and of spare parts and accessories.
The Bank of Indonesia bases its figures on a survey of 650 retailers in 10 major cities. IT predicts a further easing in the next quarter before demand picks up in June, during Ramadan fasting.
The bank also said it expects inflation to ease, largely due to falling fuel prices.
December’s figure was well down on October’s 17.6 per cent and September’s 8.9 per cent.
Questions & Answers
Q.Which specific product categories contributed most to the slowdown in Indonesia's retail sales?
Which specific product categories contributed most to the slowdown in Indonesia's retail sales?
The slowdown in the year-on-year growth rate for retail sales was primarily attributed to poor sales in household utensils, cultural and recreational goods, and spare parts and accessories.
Q.What is the Bank of Indonesia's projection for retail demand in the coming months?
What is the Bank of Indonesia's projection for retail demand in the coming months?
The Bank of Indonesia predicts a further easing of retail demand in the next quarter. However, it expects demand to pick up again in June, coinciding with the Ramadan fasting period.
Q.What factor does the Bank of Indonesia expect to help ease inflation in the near future?
What factor does the Bank of Indonesia expect to help ease inflation in the near future?
The Bank of Indonesia anticipates that inflation will ease, largely due to a decline in fuel prices. This is expected to contribute to a more stable economic environment.
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