China inflation worries hang over store owners already struggling with weak consumer demand
- Store owners at Beijing’s Sanyuanli market have been dealing with weak consumer demand since last year due to the coronavirus
- But now amid rising global commodity prices, they are so far resisting passing on increased costs to customers as consumer ‘demand is just not strong’
Faced with global commodity prices that show no signs of retreating, store owners at Beijing’s Sanyuanli market are facing the possibility that inflation may add pressure onto China’s already weak consumer demand.
With the coronavirus having weakened local demand since last year, the prices of some products such as seafood and meat have risen recently, partly due to seasonal factors, and owners are unable — or in some cases unwilling – to pass on the increased costs to customers.
“Usually around this time, wild caught products are more expensive because of a lower supply. But these days even prices of freshwater fish from inland fish farmers are up quite a bit. I have no idea why,” said a store owner who has been selling seafood for over 20 years in the market, but asked not be named.
“We’ve tried not to raise prices too much. Many stores here are the same, so business is just so-so.”
We didn’t lift prices. They are pretty much the same since the start of the year
A lamb and beef butcher at Sanyuanli market said the wholesale price of domestically produced meat has risen by a small amount, but he has chosen not to pass on the cost to his customers.