China nervous as instant noodle prices jump
Friday, 27 July 2007
BEIJING, July 26 (AFP): Amid spiralling food costs, Chinese authorities are concerned about a sudden spike in the price of instant noodles-one of the nation's most popular dishes-state press reported today.
The price of a packet of instant noodles has jumped an average 20 per cent this week, and by as much as 40 per cent in some cases, as manufacturers pass on the cost of a general rise in ingredients.
"We have noted the recent price rise of instant noodles and are keeping a close eye on this development," an unnamed official with the commerce ministry was quoted as saying by the Shanghai Securities News.
China produced 46 billion packs of instant noddles last year, accounting for 51 per cent of the world's production, according to the newspaper.
Thirty billion packets of noodles, costing the equivalent of around 5-35 cents, were eaten in China last year, an average of about 23 packets for each person.
Experts said the spike in the instant food was mainly triggered by the increase in costs of raw materials such as palm oil and meat, the newspaper said.
Food prices in China soared 11.6 per cent in June, pushing the overall inflation rate to 4.4 per cent for the month and sparking nervousness from the government which wants to keep inflation at or below 3.0 per cent.
Premier Wen Jiabao and other Chinese leaders have previously voiced their concern that the rising cost of food could lead to social unrest.
The price of a packet of instant noodles has jumped an average 20 per cent this week, and by as much as 40 per cent in some cases, as manufacturers pass on the cost of a general rise in ingredients.
"We have noted the recent price rise of instant noodles and are keeping a close eye on this development," an unnamed official with the commerce ministry was quoted as saying by the Shanghai Securities News.
China produced 46 billion packs of instant noddles last year, accounting for 51 per cent of the world's production, according to the newspaper.
Thirty billion packets of noodles, costing the equivalent of around 5-35 cents, were eaten in China last year, an average of about 23 packets for each person.
Experts said the spike in the instant food was mainly triggered by the increase in costs of raw materials such as palm oil and meat, the newspaper said.
Food prices in China soared 11.6 per cent in June, pushing the overall inflation rate to 4.4 per cent for the month and sparking nervousness from the government which wants to keep inflation at or below 3.0 per cent.
Premier Wen Jiabao and other Chinese leaders have previously voiced their concern that the rising cost of food could lead to social unrest.