Coronavirus, power crisis send China vegetable prices soaring, but inflation risks set to be temporary
- Wholesale vegetable prices in China have surged to their highest level since February, with officials pledging to crack down on hoarding and ensure a stable supply
- Economists expect the boost to inflation to be temporary, with prices likely to remain high for a few months until demand eases during the Lunar New Year in February
Vegetable prices have soared in China in recent weeks, costing more than meat in some cases, and creating another headache for consumers already hit by power shortages and strict coronavirus curbs.
Wholesale vegetable prices surged 28 per cent in the four weeks through until October 22, and is now at the highest level since February, data from the Ministry of Commerce shows.
Due to multiple factors, such as cooler weather and rainfall, the prices of some edible agricultural products, especially vegetables, and some means of production, have continued to rise recently,
Cauliflower and broccoli costs about 50 per cent more, while spinach surged 157 per cent in the four-week period. At Beijing’s Xinfadi market, a half-kilogram bag of lettuce or water spinach cost as much as 8 yuan (US$1.25) on Wednesday. The same quantity of pork cost about 8 yuan to 10.5 yuan, and chicken was 7 yuan to 10 yuan.
The rally is so strong that China’s agriculture ministry last week pledged to crack down on vegetable hoarding and to ensure stable supply.
“Due to multiple factors, such as cooler weather and rainfall, the prices of some edible agricultural products, especially vegetables, and some means of production, have continued to rise recently,” said commerce ministry spokeswoman Shu Yuting on Thursday.