Farm Produce Prices Rise on Holiday Demand

by 5m Editor
7 January 2011, at 9:40am

CHINA - The prices of Chinese farm produce edged higher last week, boosted by New Year holiday demand, the Ministry of Commerce said Wednesday.

Low temperatures and freezing rain in some parts of China also pushed up prices, the ministry said in a statement posted on its website.

During the week of 27 December to 2 January, the wholesale prices of 18 staple vegetables rose, with the price of balsam pear, cucumber and beans up 8.2 per cent, 6 per cent and 3.7 per cent, respectively.

The price of meat rose slightly, with pork prices up 0.8 per cent. Mutton prices rose 0.8 per cent and chicken prices rose 0.4 per cent.

Peanut and soybean oil prices increased 0.3 per cent. Colza oil prices edged 0.2 per cent higher.

Bucking the trend, the price of producer goods fell slightly last week, after rising for three consecutive weeks. The prices of iron ore and copper ore fell 1.1 per cent and 0.5 per cent, respectively.

Food prices have a one-third weighting in the calculation of China's consumer price index (CPI), the major gauge of inflation. China's CPI hit a 28-month high of 5.1 per cent in the year to November.