China's consumer price index (CPI) grew by 2.2 percent in Jan. 2007 over the previous year's same month, the National Bureau of Statistics (NBS) reported on Wednesday.

The growth rate was 0.6 percentage points lower than that for the previous month, December of last year, according to NBS.

NBS figures show that food price rose 5 percent in January and the price of consumer goods moved up by 2.6 percent.

NBS said grain price rose by 6.9 percent year-on-year and that of vehicle fuel and parts went up by 10.8 percent.

China's CPI grew by 1.5 percent in 2006 over the previous year, NBS statistics show.

The growth rate was 0.3 percentage points lower than the previous year, according to NBS.

China's CPI is expected to climb 2.5 percent in 2007, according to a forecast of the Ministry of Commerce.

Retail sales in China is expected to jump around 13 percent year-on-year to 8.6 trillion yuan (US$1.1 trillion) this year, according to the forecast.

Rising incomes of urban residents and increasing use of cars will fuel spending on health care, tourism, recreation, cosmetics, gifts and jewelry, it said.

(Xinhua News Agency February 14, 2007)