China's retail sales are surging, with May retail sales increasing 21.6 percent to 870.4 billion yuan. The main drivers of this improvement were petroleum (+42.5 percent), automobiles (+32 percent), jewelry (+29.4 percent) and furniture (+37.1 percent). Food inflation helped push food prices up sharply, with increases of 27.6 percent in grains and 25.4 percent in meat. Apparel sales remain very strong, increasing 21.6 percent. Over the past 12 months, China's apparel retail sales have been growing monthly between 20 and 30 percent. Sales continue to be driven by aggressive markets and pricing, with new brands being introduced and brand ID building.
