JAKARTA, July 17 (Reuters) - Indonesia’s retail sales growth in May slowed to 8.6 percent year-on-year compared to a revised 10.0 percent in April due to lower sales of food, beverages and tobacco, a central bank survey showed on Wednesday.
Pressure on retail prices in Southeast Asia’s largest economy is expected to rise over the next two to three months due to the Muslim fasting month and a fuel price hike.
“(Retail sales growth) is expected to keep slowing in June 2013 due to the decline in sales, especially in Jakarta,” Bank Indonesia said in its survey of 600 retailers in 10 major cities.
The central bank expects pressure on prices to ease in the next six months as consumption returns to normal after the fasting month.
Reporting By Nilufar Rizki; Editing by Randy Fabi & Kim Coghill