Jakarta. Indonesia’s retail sales are expected to remain on a growth path in December 2025, supported by stronger consumer spending during the Christmas and New Year holiday season, Bank Indonesia said on Monday.

The central bank projected the Real Sales Index (IPR) to grow 4.4% year-on-year (yoy) in December, reflecting solid demand across several key segments, including auto spare parts and accessories, food, beverages and tobacco, cultural and recreational goods, as well as automotive fuels.

On a monthly basis, retail sales in December were forecast to rise 4.0% month-on-month (mtm), accelerating from 1.5% growth in November. The improvement was driven mainly by higher sales of information and communication equipment, cultural and recreational goods, other household equipment, and food and beverages, in line with increased public consumption during the national religious holidays.

“The pickup in December sales indicates resilient household demand, particularly during the Christmas and New Year period,” Ramdan Denny Prakoso, executive director of communication at Bank Indonesia, said in a statement. “Most retail categories recorded stronger performance compared to the previous month.”

In November 2025, the IPR expanded 6.3% yoy, up from 4.3% growth in October, underpinned by higher sales of spare parts and accessories, food, beverages, and tobacco, and cultural and recreational goods. Monthly retail sales also increased 1.5% mtm in November, supported by rising demand ahead of the year-end holiday season.

From the price perspective, Bank Indonesia noted that inflationary pressures are expected to pick up in the next three months before easing over the medium term. The General Price Expectation Index (IEH) for February 2026 rose to 168.6 from 163.2 previously, driven by expectations of price increases ahead of Ramadan 1447 H.

“Short-term price expectations have edged higher as businesses anticipate stronger demand ahead of Ramadan,” Ramdan said. “However, pressures are projected to moderate further out.”

The IEH for May 2026 stood at 154.5, lower than the previous reading of 161.7, indicating expectations of easing price pressures over the next six months.