"Improvement in retail sales occurred in most of the commodity groups monitored, such as the food, beverage, and tobacco group that recorded positive growth in the last two months, as well as improvements in the clothing and motor vehicle fuel sub-groups," Executive Director of the Communication Department of Bank Indonesia (BI) Onny Widjanarko noted in the latest information in Jakarta, Wednesday.
Widjanarko remarked that the improvement in retail sales is projected to be slightly restrained in October 2020, growing by -10.0 percent yoy.
Several commodities, including the food, beverage, and tobacco category and cultural and recreational goods group, are forecast to experience a decline in sales.
Meanwhile, several commodities are projected to record an improvement in sales performance, including household appliances and motor vehicle fuels.
On a monthly basis, retail sales performance is forecast to grow 0.1 percent (mtm) in October 2020, in line with the celebrations of national religious holidays (HBKN) and long holidays at the end of the month.
In terms of prices, the inflationary pressure is forecast to increase in the next three months until December 2020, while in the next six months until March 2021, it will decline.
This indication of a hike in prices in December 2020 is reflected in the general price expectation index (IEH) for the next three months of 142.5, higher than the previous month's IEH of 132.5. This was driven by an increase in demand during the HBKN and year-end holidays.
Meanwhile, the IEH for the next six months is 160.0, lower than 166.9 in the previous month, in line with the smooth distribution of goods and supplies, Widjanarko stated.
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Translator: A Buchori, Azis Kurmala
Editor: Fardah Assegaf
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