In an environment of expanding retail inflation, China’s clothing prices continue to fall year over year. June data show that Chinese apparel prices paid by consumers dropped -1.6% from twelve months earlier, comparable to the last two months’ losses. June marks the thirteenth straight month of eroding garment prices, and the 74th time in the last 79 months that prices declined from year-earlier levels. Apparel prices in the first half of the year are now down -1.5% from the same period in 2007. These weaker garment prices relative to increased costs for many other goods and services in China are serving to boost retail apparel sales faster than expanding total retail sales. Recent analysis here confirms that growth in 2008 garment sales are in fact outpacing total retail sales from the first half of last year, 25.1% versus 21.4%.