The value of retail sales and services dropped by 2.5 percent last month compared to January to 186.463 trillion VND (8.8 billion USD), announced the General Statistics Office (GSO).

February's total brings the value of retail sales and services to 380.28 trillion VND (17.29 billion USD) in the first two months of this year, a year-on-year increase of 22 percent against the same period last year.

However, when price increases were considered, the growth value was only 4.4 percent against the same period last year, nearly equal to a half of the growth in the first two months of 2011, the GSO said.

GSO Trade Department experts said that the low retail sales growth during the period was due to the high consumer price index (CPI) of 16.85 percent.

To cope with inflation and lower incomes due to the economic crisis, consumers have been forced to tighten their budgets.

Demand for paper and packaging experienced the highest slump at 39.4 percent while consumption of wooden products followed closely with a 38.8 percent decrease.

Demand for footwear, and textiles and garments fell by 21.7 and 14.8 percent, respectively.

The GSO experts said there are no signals to ensure that demand for commodities and services will increase in the near future as incomes will remain stagnant while prices for many products would keep steady or continue rising./.