Yearly Archive with month in drupal7
There is an archive view that comes bundled with Views (Check out admin/build/views page, views name Default Node view: archive (default)), just clone and modify it as per your need and it should work. 

Also check this links containing discussion about the same requirement:


How to create monthly archive block
How to create a monthly archive block for a Drupal blog with Views
Views Archive Drill Down (Year//Month/Day) Block