:. Food Industry News


China Fresh Food Prices to Move Higher-Economist

Source: Reuters
12/05/2008

Beijing, May 12 - Prices of food, especially of agricultural products, will continue to rise, making it difficult for China to hit this year's 4.8 percent inflation target, a senior government economist said in remarks published on Monday.

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Yao Jingyuan, chief economist of the National Bureau of Statistics, was also quoted by the China Business News as saying that surging upstream prices would eventually pass through to the cost of consumer goods.

A spike in food prices since the middle of last year has boosted consumer inflation to near 12-year highs, while factory-gate prices have also accelerated in recent months. They rose 8.1 percent in the year to April.

"Imported inflation will put major pressure on overall prices," Yao said, noting sky-high global grain and oil prices.

But he also said prices for industrial goods would gradually drop due to improved technology and management.



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