Retail sales rose 0.5 percent in June driven by an increase in sales for food and liquor.However after adjusting for the annual rate of inflation, measured at 2.9 percent in June, the volume of retail sales decreased by 1.1 percent, according to the Retail Sales Index figures released by the Department of Statistics yesterday.Consumers spent $91.1 million on retail goods representing an increase of $0.4 million year-over-year. All retail sectors reported declines in sales activity with the exception of food stores, liquor stores and the ‘catch-all’ category of stores.Gross receipts for food stores increased 8.7 percent. This was partly due to a rise in food prices, for items such as vegetables and fresh fruit. Sales revenue for liquor stores grew 9.5 percent during the month, probably helped by an influx of thirsty sailors from the Newport-Bermuda yacht race.The ‘all other’ store types sector experienced a 1.4 percent rise in sales receipts during June. Gross receipts for boat and marine supplies stores jumped 80.1 percent. Retailers of furniture, appliances and electronics reported an increase of 4.9 percent. During the same period, sales for tourist-related stores and pharmaceutical products declined by 9.9 percent and 2.8 percent, respectively.Apparel stores continue to struggle as aggregate sales declined for the third consecutive month. Gross sales revenue fell 6.7 percent year-over-year.Sales receipts for building material stores fell 16.8 percent below the level reached in June last year. This decline reflected a slowdown in construction activity and marked the first decrease in demand for building materials since August 2011.The auto industry is still in free-fall. Sales revenue for motor vehicle outlets fell 18.7 percent when compared to June last year. There were 12 fewer cars sold during the month. In contrast, 37 more motorcycles were sold.Service station sales fell 5.2 percent when compared to the sales level reached in June 2011. Retailers attributed this decline to lower fuel sales per litre partly due to fewer vehicles being serviced.Residents returning to the Island declared overseas purchases of goods valued at $5 million during June 2012. This was two percent or $100,000 more than the $4.9 million declared in June 2011. Combined local and overseas spending totalled $96.1 million.