In June, China’s overall Consumer Price Index posted annual gains of 4.4 percent, which was the highest monthly growth in years and was up from a 2.2 percent increase in January. The price inflation is being led by an 11.3 percent increase in the average price of food. Within the food group, meat and poultry prices soared 35.7 percent, while consumer durable goods and services only grew 1.8 percent.

The pricing environment for apparel is continuing to be very competitive, with the average price of apparel falling .3 percent in June, which followed a decline of .10 to .20 percent in March through May. Monthly prices increased in November 2006 through February 2007.