REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia said increase in retail sales in August indicated the revival of household consumption, which has been one of the country's economic growth drivers.

Head of the Economic and Monetary Policy of the Central Bank Dody Budi Waluyo said retail sales grew 5 percent in August after shrinking 3 percent in July, this year.

"This is positive. There is indication that the people's consumption is growing. Indeed, the wages of farm and building workers have increased,"Dody said here on Friday.

In addition contraction in the farmers' exchange rate is narrowing, he said, adding, those positive factors contribute to pushing up consumption.

"Therefore, there is less constrain in income," he said.

Retail sales in July, 2017 shrank with the return to normal condition after Ramadhan and Ied ul Fitr. It was reflected by the Real Sale Index based on a Retail Sales Survey in July of 209.9 or down 3.3 percent year-on-year, after a 6 percent rise yoy in previous month.

The July's decline was recorded in retail sales both in in food and non food groups. in a number of cities such as Semarang, Denpasar, and Manado.

A resurge was estimated in retail sales in August as indicated by a 5.3 percent growth yoy in IPR higher than in the previous month. Sales of food products were estimated to grow 10.4 percent in August after shrinking 0.3 percent in July. Improvement was also recorded in retail sales of non food products from a contraction of 7.8 percent to 1.9 percent.

"Therefore, indications are improving in consumption. Whether the purchasing power has recovered depends on income, but income indications also have improved compared with in July," Dody said.

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