China April retail sales likely improved partly due to an uptick in inflation

China's retail sales growth dropped to 10.2% y/y in March, the lowest level in the past year. Given that employment remains stable and disposable income is rising faster than GDP, the March data could be an outlier caused by volatility associated with the Lunar New Year. 

"With CPI inflation expected to edge up in April, we expect retail sales growth to have picked up slightly to 10.6% y/y", notes Standard Chartered in a note on Monday.