Bank Indonesia Survey: Price Pressure Will Increase in January 2019

id Utama. Jakarta, the Bank Indonesia Retail Sales Survey (BI) estimates that the pressure of price increases will occur until January 2019. This is in line with the price adjustments that producers will make at the beginning of the year.

Pressure from rising prices is indicated by the general price expectation index which is expected to increase from 159.3 this month to 163.9. In fact, the price expectation index in December has increased compared to this month, along with the momentum of Christmas and New Year.

"The increase in prices is in line with the plan for price adjustments made by producers at the beginning of the year," the survey said, quoted Tuesday (12/11).

The BI survey also estimates retail sales will increase in December. However, it declined in January 2019 as the seasonal factors ended Christmas and New Year.

This was mainly reflected in the December 2018 sales expectation index (IEP) which reached 165.9, higher than the previous month. However, it declined in January 2019 to 156.

While last month, the BI survey estimated retail sales to continue to grow positively. This is mainly reflected in the real sales index, which grew 3.4 percent on an annual basis.

The increase in retail sales last month was mainly driven by clothing groups which grew 29 percent on an annual basis and the motor vehicle fuel group grew 18 percent on an annual basis. (agi / agi)

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