Retail sales in Indonesia grew by 1.9% year-on-year in May 2025, rebounding from a 0.3% decline in April - the first annual drop since April 2024. The recovery was mainly driven by increased sales of food, beverages, and tobacco (4.0% vs 1.2% in April), as well as cultural and recreational goods (4.7% vs 3.6%). Meanwhile, sales growth eased for automotive parts and accessories (1.6% vs 8.7%) and fuel (5.3% vs 8.3%). Additionally, sales fell much less for household appliances (-5.8% vs -10.5%) and clothing (-0.3% vs -5.4%). Meanwhile, information and communication equipment continued to fall (-27.4% vs -25.1%). Looking ahead, retail sales in June are expected to grow by 2.0%, primarily supported by rising sales of fuel, automotive parts and accessories, and clothing. On a monthly basis, however, retail sales fell 1.3% in May, following a sharper 5.1% decline in April. The softer monthly contraction was partly due to increased spending during several holidays in May.