Through the first half of 2008, total retail sales in China shrugged off slower growth in the broader economy described here and expanded 21.4% from the same period last year, with clothing sales climbing 25.1%. Cumulative retail sales through the first half of the year stand just over 5.1 billion yuan ($728 billion), versus 4.2 billion yuan a year ago. Both total retail sales and apparel sales remain on track to expand to record levels in 2008. The year-to-date jump in sales is driven higher by June volume climbing 23.0% from a year earlier, the biggest increase in over twelve years.
However, these impressive gains ignore the effects of inflation. Over the first half of the year, retail prices jumped 7.9%, the steepest rate also in twelve years. Should looming inflation strengthen further in coming months, this could sap the purchasing power of households and slow retail sales gains in future months.
However, these impressive gains ignore the effects of inflation. Over the first half of the year, retail prices jumped 7.9%, the steepest rate also in twelve years. Should looming inflation strengthen further in coming months, this could sap the purchasing power of households and slow retail sales gains in future months.
