CHINA'S retail sales rose 18.1 percent annually to an 11-month high in December, bolstered by robust demand in the run-up to the new year and the Spring Festival.

Retail sales climbed from a year earlier to 1.77 trillion yuan (US$281 billion) last month, the National Bureau of Statistics said yesterday.

For last year retail sales grew 17.1 percent. In November they rose 17.3 percent annually.

"People's spending has seen a stable growth last year thanks to their rising disposable income and China's improving social welfare," said Ma Jiantang, the bureau's head.

Last year, urban residents saw their disposable income jump 14.1 percent from a year earlier to 21,810 yuan, while that of rural dwellers gained 17.9 percent to 6,977 yuan.

Ma added consumption will rise rapidly in future as China's vast urbanization continue to drive the country's economy.