March retail sales up 6.1%: BI survey

March retail sales up 6.1%: BI survey

Illustration: Shoppers and vehicles crowd the road in Kebon Kembang Market, Bogor City, West Java on Sunday (May 9, 2021). Strong public demand ahead of Ramadan coupled with favorable seasonal and weather conditions boosted retail sales in March this year. (ANTARA PHOTO/Arif Firmansyah/hp)

Jakarta (ANTARA) - Bank Indonesia’s Retail Sales Survey (SPE) has indicated an increase in monthly retail sales in March this year compared to the previous month.

“Real Sales Index (IPR) March 2021 grew 6.1 percent (mtm), increasing from the previous month's growth of minus 2.7 percent (mtm)," executive director of the central bank’s communication department, Erwin Haryono, said in an official statement received in Jakarta on Tuesday.

According to the survey’s respondents, the increase in retail sales was in line with strong public demand ahead of Ramadan as well as favorable seasonal and weather conditions.

Retail sales swelled across all groups, especially in the clothing sub-group, which saw sales rising from minus 8.7 percent to 8.4 percent (mtm), Haryono informed.

Sales in the cultural and recreational goods group increased from minus 8.6 percent to 2.5 percent (mtm). Meanwhile, in the motor vehicle fuel group, sales jumped to 8.1 percent (mtm) in March from minus 2 percent the previous month, he added.

Erwin further said that based on the SPE results, respondents expect the surge in retail sales to continue till April, 2021.

"This is reflected in the April 2021 IPR, which is projected to grow by 11.4 percent (mtm), in line with the increased purchasing power of the people during Ramadan, favorable seasonal and weather conditions, and the number of discount programs," he noted.

Most groups are expected to record increased sales, especially the food, beverage and tobacco, information and communication equipment, and other goods groups, he disclosed.

On an annual basis, retail sales are predicted to increase by 9.8 percent (yoy) from minus 14.6 percent.

An increase is expected in all commodity groups, particularly other food items, the clothing sub-group, motor vehicle fuels, and the food, beverage and tobacco groups.

In terms of prices, the survey’s respondents have forecast an easing of inflationary pressure in the next three and six months (ending June and September, 2021), Haryono said.

The General Price Expectation Index (IEH) for the next three months (ending June, 2021) is expected to decline to 141.4 from 156.4 due to adequate inventory of goods and smooth distribution of goods, he informed.

Meanwhile, the IEH for the next six months (ending September, 2021) is also expected to fall to 134.9 from 141.7 on account of smooth distribution of goods and sufficient supply, he added. (INE)
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