Indonesia Feb retail sales grow 16.5% year-on-year: central bank survey

[JAKARTA] Indonesia's annual retail sales in February grew at a much faster pace of 16.5 per cent, bolstered by information and communication equipment as well as food, beverages and tobacco, a Bank Indonesia survey showed on Thursday.

Retail sales grew 10.9 per cent in January, which was revised from an initial 10.4 per cent.

The 650 retailers in 10 major cities surveyed said they expected sales growth would continue to accelerate in March, led by an increase in sales of food, beverages and tobacco.

The respondents also expected price pressures in the next three months would rise due to concerns over higher prices and subsidy cutbacks in fuel, electricity and liquified petroleum gas.

However, the survey also showed that the price pressures were expected to ease in August when demand returned to normal after the Eid-al Fitr holiday.

The respondents expected demand would increase in the next three months due to an improvement in purchasing power.

REUTERS