The National Bureau of Statistics (NBS) announced on Thursday that retail sales in urban areas jumped 9.7 percent year-on-year to 1,229.2 billion yuan (US$148.5 billion) in the January-June period, while rural retail sales rose 6.7 percent to reach 715.7 billion yuan (US$86.4 billion).

NBS figures show retail food sales in the January-June period soared 12 percent year-on-year; retail clothing sales rose by 10.4 percent, and other retail commodity sales shot up 13.5 percent.

Telecommunication equipment, automobiles, architectural materials and furniture were among the retail goods with the highest growth, according to the NBS.

The NBS attributes the steady growth of retail sales to the sound performance of the national economy, the increased incomes of urban and rural residents and the improvement in the purchasing power of people with low incomes.

In addition, cheaper prices for some commodities since China's entry into the World Trade Organization (WTO) and a better purchasing environment for shoppers also boosted sales, according to the NBS.

On the flip side, China's consumer price index (CPI) dropped 0.8 percent in June compared with the same month last year, official statistics show.

NBS said the CPI, one of the standard measures of inflation, fell 0.9 percent in urban areas in June compared with a year ago. The CPI in rural areas dipped 0.5 percent.

According to NBS figures, 23 of the 31 provinces, municipalities and autonomous regions surveyed saw falls in the CPI ranging from 0.2 to 2.6 percent in June. Those with the largest drops were Guangdong Province, down 2.6 percent, Shaanxi Province, down 1.6 percent, and the Guangxi Zhuang Autonomous Region, down 1.4 percent.

On a year-on-year basis, the prices of consumer goods, food and non-food products declined 1.4 percent, 0.2 percent and 1 percent respectively in June. But the price of services rose 1.4 percent.

(China Daily July 19, 2002)