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Indonesian Retail Sales Expected to Strengthen in March
Holiday foot traffic is expected to have boosted retail sales in Indonesia in March, reported Bank Indonesia on Monday.The nation's Real Sales Index (RSI) survey for March, in which respondents estimate sales, rose 2.4% on year, said the central bank.The rise in on-year retail sales is primarily supported by growth of vehicle spare parts and accessories, food, beverages and tobacco, as well as cultural and recreational goods, said Bank Indonesia.On month, surveyed retailers predict sales in March to grow by 9.3% from February, due to the "Ramadan 1447 H and the Eid-ul-Fitr national religious holiday," explained Bank Indonesia.In February, the retail sales index posted annual growth of 6.5% on year, said the central bank.On the inflation front, survey respondents in March expected a build-up of inflationary pressures in the next three months, while pressures in the next six months are expected to remain relatively stable.One reason the national inflation outlook is stable is that the Indonesian national government subsidizes fuel.The Indonesian government has committed to maintaining fuel subsidies through the end of the year, despite large fiscal costs caused by rising oil prices after Iran blocked of the Strait of Hormuz in March, said Minister of Energy and Mineral Resources Bahlil Lahadalia, in early April.
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