JAKARTA (Yosefardi) – Bank Indonesia reported retail sales in August 2913 grew by 3.2% month-to-month, compared to 11.6% growth in July 2013, turned into a normal trend after Lebaran festivities.
The drop in retail sales was occurred on all goods, mainly clothes. However, inline with the slowdown in economic growth, August 2013 retail sales indicates a slowdown of consumption.
Year to date, retail sales still grew by 1.3% (year-on-year), but far lower from 15.2% year-on-year growth in JUly 2013 and 10.6% year-on-year growth in August 2012.
BI Survey indicates further decline in consumption in September 2013, with real retail sales projected to decline by 14.3% month-to-month.
Meanwhile BI survey indicates the sellers might tend to raise prices of goods, such as imported goods, in next 3-6 months, as a consequence of weakening rupiah against the US Dollar.
The increase in prices of goods would be also pushed by demand by consumers within next 3 months, such as staple foods, processed foods, beverages, cigarettes, and tobacco, ahead of and during Christmas and New Year events.