Indonesia: Retail sales growth maintains healthy pace in October
December 9, 2014
Retail sales in October expanded 17.7% over the same month last year, according to Bank Indonesia’s Retail Sales Survey (RSS). The expansion was roughly in line with the 17.9% rise observed in September. According to the Bank, October’s expansion was driven by strong growth of sales of information and communication equipment, motor vehicles and parts, as well as food, beverages and tobacco.
Annual average growth in retail sales picked up from 16.8% in September to 17.2% in October, which represented the highest result since February 2011. However, according to the survey, retailers expect sales to weaken in November to a 15.6% annual growth rate. Retailers also expressed that price pressures will increase in the coming months after the government increased the price of subsidized fuels in November.
Author: Carl Kelly, Economist