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Food prices in China up every week of October, commerce ministry says

Consumers browse greens at a contemporary meals market in Shanghai, China, on Wednesday, Nov. 3, 2021.

Qilai Shen | Bloomberg | Getty Pictures

BEIJING — Costs in China are rising rapidly for meals and different commodities, growing strain for policymakers tasked with protecting progress secure.

Meals costs in China rose each week in October, in accordance with information on edible agricultural merchandise from the nation’s Ministry of Commerce.

A basket of 30 greens hit 5.99 yuan per kilogram ($2.06 a pound) within the week ended Oct. 31, up 6.6% from the prior week. Within the week ended Sept. 26, the worth per kilogram had been 4.39 yuan ($1.51 a pound).

The inflationary strain and the tightening trajectory of different international locations’ financial coverage will restrict the scope China has to ease its financial coverage, stated Bruce Pang, head of macro and technique analysis at China Renaissance.

Restricted skill to ease financial coverage means China would require extra assist from fiscal and industrial insurance policies to forestall stagflation, Pang stated. He expects the financial system can nonetheless develop by about 4% to five% within the fourth quarter.

Meals inflation information deleted

Shoppers below strain

The patron value index, which measures prices for customers, seemingly doubled its tempo of progress in October “largely as a result of a pointy rebound in meals inflation, as vegetable costs surged on decrease provide as a result of adversarial climate, greater than offsetting subdued pork prices,” Morgan Stanley economist Robin Xing and his staff stated in a report distributed Thursday.

Nevertheless, their prediction of a 1.5% year-on-year client value index improve in October stays comparatively low. Xing famous “subdued” client demand, particularly as authorities announce tighter travel restrictions to control a spike in coronavirus cases in the last several days.

In September, the patron value index’s muted good points of 0.7% from a yr in the past had been dragged down by a 5.2% decline in meals costs.

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The producer value index, a measure of manufacturing prices for factories, rose by a report 10.7% in September from a yr in the past. Surging uncooked supplies prices have reduce into producers’ income.

The producer value index seemingly set a brand new report of between 11% to 12% year-on-year progress in October, Pang stated. That is primarily based on his calculations from information launched over the weekend as a part of the official Purchasing Managers’ Index for October.

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