The holy fasting month of Ramadan and subsequent Idul Fitri celebrations always add a couple of percentage points to consumption figures. Ramadan and Idul Fitri occurred in July and August and will therefore influence figures of consumption in both months. After the celebrations, retails sales will drop to a normal level. Also prior to the Ramadan, retail sales tend to increase, as can be seen in the June retail sales figure, because people buy products in preparation of the upcoming fasting month.

However, after the government decided to raise the price of subsidized fuels in June (which resulted in a 8.61 percent YoY inflation rate in July), Indonesians' purchasing power is expected to fall slightly as retailers are expected to increase prices of their products.

Bahas