Food Prices in China Exhibit Marginal Increase, Mounting Pressure on Beijing for Better Strategies

Published By : 14 Oct 2015 | Published By : QYRESEARCH

Decelerated consumer inflation is witnessed by China in September, as the food prices ease in the country, which consequently reflects the weak domestic demand. The scenario, therefore, is building up pressure on Beijing to formulate new strategies to rekindle the economy. 

As revealed in the data released by the National Bureau of Statistics on Wednesday, consumer price index of China rose 1.6% in September than a year earlier, thereby exhibiting slower rise than August numbers, which stood at 2.0%. China is in the dire need of more monetary and fiscal stimulus to reach its growth target, which it had set to 7% at present. The task would be otherwise easier if the policy makers didn’t have to worry about the accelerating inflation. 

Among the different economic segments impacted by the recent inflation is the food industry of the country. As revealed in reports, food prices in China have remained expensive of late. However, the increase is food prices is not enough to change the eating habits of families. The prices of eggs and cucumber in China is showing a steep rise, however, the prices of clothing have not increased much, as per sources. 

Food prices may seem higher, however, it did not affect the purchase pattern of Chinese families. They said that the recent food price hike did not adversely impact the eating patterns of families or the amount of food consumed by a typical Chinese family on any given day. 

A prominent economist, Yu Qiumei said in a statement released recently that food prices declined by 0.1% in September, while the prices of non-food items increased by 0.2% in the country. The figures although are pretty weak, leading market analysts consider consumer prices by trend rise in China during the Golden Week holiday in October. Amidst prevailing circumstance more strategic steps are needed to achieve the growth targets China has set for itself.

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