Experts forecasted that China’s food prices will face a new round of inflation amid unfavorable weather and the approaching Spring Festival, also known as the Chinese Lunar New Year, which will begin on Feb 10.
Data from the Ministry of Commerce showed that the average wholesale prices of 18 monitored vegetables increased 2.9% in the week from Dec 24 to Dec 30 compared with the previous week. Wholesale pork prices rose 0.9% in the same period.
In addition to the chilly weather’s impact on vegetable transportation, the consumption rush during the Spring Festival will also boost food prices, which might see a new round of inflation, said Fan Jianping, deputy director of economic forecasts at the State Information Center.
China’s CPI is expected to be up 2.5% year-on-year in December, compared with November’s 2.0% increase year-on-year.
Source: People’s Daily Online Jan 2013