Indonesia: Retail sales growth moderates in November
January 9, 2015
Retail sales in November expanded 14.2% over the same month of the previous year, according to Bank Indonesia’s Retail Sales Survey (RSS). The expansion was below the 17.7% rise observed in October. According to the Bank, October’s expansion was driven by strong growth of sales of information and communication equipment, automotive fuels, as well as food, beverages and tobacco.
Annual average growth in retail sales decreased from 17.2% in October to 16.9% in November. Moreover, according to the survey, retailers expect sales to weaken significantly in December to a 4.2% annual growth rate. Retailers also reiterated that price pressures will increase in the coming months after the government increased the price of subsidized fuels in November.
Author: Carl Kelly, Economist