Consumers` perception of economy improves: Indonesia Central Bank

Consumers` perception of economy improves: Indonesia Central Bank

The Indonesia Central Bank (Bank Indonesia) building in Jakarta. (ANTARA/P003)

Consumers` expectation is measured on Consumers` Expectation Index that rose 4.5 points to 127.7 points."
Jakarta (ANTARA News) - Bank Indonesia said the consumers perception of the countrys economy is improving pointing to 3.1 point increase in the Consumer Confidence Index (IKK) in May to 112.1 points from 109 points in April 2016.

A survey by the central bank issued on Wednesday showed that IKK has increased on improvement of consumers perception and expectation of the countrys economy in the next six months.

The consumers perception of the economy at present is measured on the present Economic Condition Index (IKE) that rose 1.8 points to 96.5 points.

"Consumers expectation is measured on Consumers Expectation Index that rose 4.5 points to 127.7 points," the central bank said in a report.

There are 12 cities reporting an increase in consumers confidence with the highest recorded by Manado of North Sulawesi at 20 points, followed by Banjarmasin of South Kalimantan at 9 points.

Based on levels of expenditures, the high IKK was recorded by group of consumers with spending more than Rp5 million a month.

The survey report said pressure of price hike is expected to fade in August , 2016 after expected price increases in June-July, 2016.

Price expectation index in the next three months is predicted to decline 2.7 points to 171.3 points in September.

Price hike pressure is predicted to die away in the sectors of food and beverages , cigarettes and tobacco and manufactured foods.

The decline in price hike pressure followed normalization after high consumption in the Islamic holy day celebration of Idul Fitri.

The monthly consumer survey by the central bank covered 4,600 households in 18 cities.
(Uu.H-ASG/A014)

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