Retail sales up 12.5%

Retail sales are expected to grow about 12.5% in the first half of 2006 from a year earlier, the South China Morning Post reported, citing a Ministry of Commerce report. Retail sales reached US$830 billion in 2005 up 12% from 2004 in real terms. Meanwhile, an earlier ministry survey showed that the supply of 72% of retail consumer goods would exceed demand, while the remaining 28% would face balanced supply and demand, underscoring downward pressure on retail prices. Annual consumer inflation has been below 2% since April 2005.