Government is concerned about the increasing inflation. The Consumer Price Index rose 3.4 percent in May as compared to last year. Prices of all durable and consumer goods hiked 2.4 percent.

The apparel retail sector has remained unaffected in spite of this price inflation. The average apparel retail price has dropped by 1 percent in May vis-à-vis last year.

Chinese retailers have raised prices of apparel. Since it is not very significant rise, sales have continued to grow in May with a surge of 23.5 percent from year-ago trades.