Indonesia’s retail sales increased 1.1% year-on-year in July 2026, ending three consecutive months of declines, supported by government measures aimed at cushioning households from persistent cost pressures. The rebound was led by food, beverages and tobacco (2.4% vs -3.6% in June) and clothing (2.8% vs -3.1%). However, growth in automotive parts sales slowed sharply (5.1% vs 18.8%). Meanwhile, spending remained weak on fuel (-7.7% vs -1.5%), information and communication equipment (-20.6% vs -20.2%) and recreational goods (-6.7% vs -6.2%). Household equipment sales also fell 4.9%, reversing a prior 2.8% increase. On a monthly basis, retail sales edged down 0.1%, shifting from a 0.7% rise in June. Retail activity may grow further in August as government support measures continue, though elevated inflationary pressures are likely to constrain the pace of recovery.