30.6% Surge In Vegetable Prices Surge In China In November Amid Soaring Food Costs

Prices of fresh vegetables in China surged by as much as 30.6 per cent in November compared to their prices in the same month a year ago, showed the latest statistics from the country’s National Bureau of Statistics on Thursday.

The huge surge in November prices was preceded by a 15.9 per cent year on year rise in the produce in the previous month. According to analysts and experts, production of vegetables in the country has been hit in recent months by floods and other extreme weather events.

Even though there was an increase in the supply of vegetables in November, according to the bureau, its prices still surged by 6.8 per cent in November compared to the prices in the previous month of October.

Analysts and investors have been closely watching for any signs of the already slowing Chinese economy being dragged down further by fast rising prices and stagnation in economic activity in the second largest economy of the world.

Food prices have been on the rise globally in recent months.

In November, prices of other food products also increased, bringing the overall inflation in food for the month to 1.6 per cent year on year.

There was a 27.3 per cent year on year surge in November in the international food price index of the Food and Agriculture Organization of the United Nations, it said, making the surge the highest for any month since June 2011.

In November, there was a 20.1 per cent year on year jump in the price of eggs in China, according to data from the bureau, while an 18 per cent surge in prices of freshwater fish was also recorded in the same month.

Despite a rise in November, compared to its highest ever price reached last year during the pandemic, the rise in the price of pork, a staple in Chinese diets, was much lower. There was a decline of 32/7 per cent year on year in the price of pork in China in November even though it was up by 12.2 per cent compared to the prices in the preceding month of October. 

The consumer price index is very sensitive to movements in the price of pork. The index rose by 2.3 per cent in November which was lower than what analysts had expected at 2.5 per cent.

The producer price index for November increased by 12.9 per cent, which was above forecast of a 12.4 per cent rise.

However, compared to October, when the index increased by 13.5 per cent, November’s level was lower.

As commodity prices have increased, the producer price index has reached new highs this year.

(Adapted from CNBC.com)

Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Sustainability

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