JAKARTA - The Retail Sales Survey in May 2020 showed a decline in retail sales. The Real Sales Index (IPR) fell by 20.6% (yoy) in May 2020, deeper than the decline of 16.9% (yoy) in April 2020. The decline in sales stemmed from the contraction in sales across all commodity groups monitored. The deepest decline was in the Clothing sub-group and the Cultural and Recreation Goods group.
Retail sales are predicted to improve slightly in June 2020 although they are still in a contractionary phase. This is reflected in the IPR growth forecast of -14.4% (yoy) in June 2020, not as deep as the contraction of sales in the previous month. Improved retail sales performance mainly occurred in the Food, Beverage and Tobacco and Motor Vehicle Fuel group.
Concerning prices, inflationary pressures in the upcoming 3 and 6 months (August and November 2020) are expected to decline. The decline in price pressures is reflected in the General Price Expectation Index (IEH) for the next 3 and 6 months (August and November 2020) of 138.6 and 142.5, lower than 162.4 and 146.4 in July and October 2020. This is due to the fact that respondents tend to maintain the selling price to maintain demand level. (LM)