Retail sales in Indonesia declined 1.8 per cent in June, compared with an annual growth rate of 7.7 per cent a month earlier, a central bank survey showed on Thursday.

The last decline from a year earlier was in January last year, when retail sales also dropped 1.8 per cent.

The survey predicted retail sales would rise 2.3 per cent on an annual basis in July, when the new school year begins.

• Original reporting by Tabita Diela; Editing by Richard Borsuk.