TEMPO.CO, Jakarta - The latest Bank Indonesia consumer survey revealed that the Consumer Confidence Index (CCI) improved in November of 2018, scoring from 122.7 to 127.0.
“The overall consumer confidence index of 2018 is 123.6, which is higher than the average of previous years,” said Agusman Zainal, Bank Indonesia Communication Department Executive Director through a written statement on Monday.
The growths could also be seen in the consumer survey’s fourth quarter of 2018 with an average CCI of 123.0 compared to the previous quarterly.
According to Agusman, the growth in consumer’s confidence is driven by their positive perception upon the current economic climate and their expectations towards the economy’s future. An improved perception was also backed by the growing amount of lasting items that are purchased.
Moreover, Bank Indonesia’s consumer survey suggests March will see an inflation rate higher the previous month. “It is mainly caused by consumer’s concern upon a potential gas price hike, especially the non-subsidized fuels,” said Agusman.
The price expectancy index in three months ahead is also expected to rise from 174.1 to 175.2. Consumers also expect inflation in June (6 months ahead) that will be caused by the increasing demands caused by the Ramadan month and Eid al Fitr celebration.