Indonesia's retail sales fell 20.6% in May

Clothing and cultural & recreational goods recorded the steepest declines.

Indonesia’s retail sales crashed 20.6% YoY in May, steeper than the 16.9% drop recorded in April, according to data from the country’s central bank.

Retailers confirmed sales contractions across all commodity groups, with the deepest declines affecting clothing as well as cultural and recreational goods.

Still, retailers predicted a slight sales improvement in June, which is projected to ease to a 14.4% drop. Retailers expected the shallower contraction to stem from sales of food, beverages and tobacco as well as automotive fuels.

In terms of prices, the latest survey pointed to milder inflationary pressures in the next 3 and 6 months as respondents hold selling prices to maintain demand. This is indicated by respective declines in the three- and six-month Price Expectations Index (PEI).