CHINA'S retail sales rose at their fastest pace in at least eight years, buoyed by rising incomes and prices in the world's fastest-growing major economy.

The 18.1 per cent increase last month from a year earlier to 826.3 billion yuan (S$161 billion) topped the 17 per cent growth in September. It was the biggest gain since 1999, when the government started releasing the data.

The median forecast of 21 economists was for unchanged growth.

Sales of clothes, electronics and motor vehicles jumped more than 30 per cent each.

'This growth has a lot to do with inflation, but demand is also strong,' said Mr Chen Xingdong, chief China economist at BNP Paribas in Beijing.

'Looking ahead, consumption should keep improving, and that will be accompanied by inflation. You can't expect to only have good things.'

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