Advertisement

Food key driver of mainland inflation

Reading Time:3 minutes
Why you can trust SCMP

Severe drought in the north and cold in the south pushed up general food prices across the mainland last month, triggering expectation of another rise in interest rates soon.

Advertisement

The National Bureau of Statistics yesterday said food prices rose 10.3 per cent in January, boosting the overall consumer price index, an indicator of annual inflation based on a set basket of goods and services, to 4.9 per cent.

The CPI rose from 1.5 per cent in the beginning of last year to a peak of 5.1 per cent in November. It eased to 4.6 per cent in December as Beijing introduced a series of monetary tightening measures.

Food inflation, however, is showing no sign of abating with price rises for grains - which make up the basic food items - surging 15.1 per cent.

Among the other major food items, meat and poultry prices rose 10.9 per cent, eggs 20.2 per cent, fish 11.1 per cent, fresh vegetables 2 per cent, and fruit 34.8 per cent.

Advertisement

Rural regions have been hit harder, with prices rising 5.2 per cent compared with 4.8 per cent in urban areas.

loading
Advertisement