China's retail sales recorded a stable increase in the first quarter this year, the National Bureau of Statistics (NBS) said yesterday.
The report from the NBS said the country's retail sales volume totalled 925.6 billion yuan (US$111.8 billion) in the January-March term, a rise of 10.3 percent over that for the same period last year.
The growth rate was almost the same as that in the same period last year.
The government's stimulus package to gear up consumer spending, started in 1999, including pay rises and interest rate cuts, has propped up growth this year, NBS analysts said.
The disposable income of Chinese urban residents was 1,846 yuan (US$222.9) per capita during the first three months of this year, up 4.7 percent year on year.
The income of farmers was 636 (US$76.8) yuan per capita, up 4.8 percent.
The income gap between the urban residents and farmers was also reflected in retail sales volume.
Retail sales in cities rose 11.5 percent in the first three months to 577.7 billion yuan (US$69.8 billion).
Sales in counties and rural areas stood at 347.9 billion yuan (US$42 billion), 8.3 percent up over those for the same period last year.
The Ministry of Agriculture said on Wednesday that the Chinese government will offer more support to agricultural enterprises, as one of China's new efforts to help farmers earn more.
Spring Festival shopping sprees and the State Council's announced ban on electronic consumer cards in March also boosted spending, the NBS said.
But the NBS pointed out that chaotic competition in the market should be tackled.
The market saw successive price cuts recently launched by the manufacturers and large retailers with the aim of attracting more customers.
This week, a new round in the TV price war was kicked off when Changhong slashed its price by 30 to 40 percent.
As a result, the gross profit rate of retailers dropped 1.3 percent in the first two months, according to the NBS statistics.
A report released by the NBS on the same day said March consumer prices dropped by 0.6 percent from February.
The consumer price index (CPI) was dragged down by decreasing prices for fresh vegetables, eggs, meat and most industrial products.
But prices of products and services which most belonged to monopolized industries were hiked up.
For example, the price of gasoline increased by 2.9 percent and the cost of local phone calls rose 6.4 percent.
According to the NBS figures, consumer prices were 0.8 percent higher in April than they were one year ago.
(China Daily 04/20/2001)
