Soaring seafood prices were among the key drivers in China’s consumer inflation indicator (CPI) jumping 2.3 percent in November 2021.
The increase in the China’s CPI is the highest in 13 months, according to the country's statistics bureau
Seafood prices rose 8.5 percent year-on-year in November, while vegetable prices were up more than 30 percent. Prices for eggs surged 17.6 percent and those for pork jumped 12.2 percent – more evidence that COVID-19-related restrictions have added to the cost of production in China, with government-enacted restrictions on movement and gatherings making it harder to get goods around the country.
The increase in seafood prices is actually less steep than earlier in 2021. Bad weather in northern China has also contributed to tighter vegetable supply while higher energy and labor costs have also been feeding through to higher prices. Rising feed costs, related to higher prices for imported inputs such as soy, have also been blamed for higher food prices, as China’s fish and pig farmers seek to pass on their elevated costs.
Qianwei Yangchu Food, a packaged food producer and supplier to the informal dining sector, announced in mid-December it will raise prices by up to 10 percent beginning on 25 December. The company has become the tenth publicly-listed firm in China’s food industry to announce price hikes in the past two months, according to Shanghai-based agricultural commodities research firm Sitonia Consulting.
China’s tough COVID-19 restrictions have been dampening consumption demand, while global demand is also softening, according to Natixis. The French investment bank is projecting China’s GDP growth rate to drop 1 percent to 5.2 percent in 2022.
Photo courtesy of Ihor Sulyatytskyy/Shutterstock
