Household Consumption Predicted To Continue To Increase

Jakarta, Feb 11 (Antara) - Bank Indonesia predicted the country`s household consumption would continue to grow after a significant growth in January, 2014. Household consumption has been the main driver for the country`s economic growth over the past several years. The latest consumer survey by the Central Bank showed the consumer confidence index (IKK) grew from 116.5 in December 2013 to 116.7 in January 2014. The indices reflect the consumer perception of the country`s economic condition at present against perception six months earlier and six months to come. The survey, which involved around 4,600 respondents in 18 large cities in Indonesia, showed that the majority of respondents were optimistic with the country`s economic condition for the next six months notably about the creation of new jobs and consumer income. The consumers, however, predicted pressure from price hike in the coming months as indicated by the Price Expectation Index being higher from previous months. The impact of the increase in the price of liquified petroleum gas (LPG) in 12-kilogram canister and the legislative election in April are feared to trigger an increase in inflation in the next three months. Meanwhile, in the next six months until July, 2014, the majority of respondents also predicted an increase the prices on growing demand for consumer goods ahead of the Islamic fasting month and Idul Fitri celebrations. The respondents also feared of security and social political impact on the economy after the presidential elecito9n on July 9 in 2014.