Food price rise a major driving force for first-half CPI in China
Friday, 20 July 2007
BEIJING, July 19 (Xinhua): Price hike for foodstuff, mainly grain, meat and fowl and eggs, contributed significantly to the rise of China's consumer price index (CPI) in the first half of this year, Li Xiaochao, spokesman with the National Bureau of Statistics, told a press conference today.
The major inflation indicator rose 4.4 per cent in June compared with a year ago, or up 0.4 per cent on the previous month.
This helped jack up CPI for the first half of this year by 3.2 per cent on the same period of last year. The growth rate was 1.9 per centage points higher than the year-earlier level.
In breakdowns, foodstuff prices rose 7.6 per cent, with grain price up 6.4 per cent, egg price up 27.9 per cent and prices for meat and fowl as well as related products up 20.7 per cent. However, prices of fresh vegetables and fruits went down 2.9 per cent from a year earlier.
Li Xiaochao noted foodstuff prices contributed 2.5 per centage points to the CPI rise in the January-June period. He said deducting prices of foodstuff and energy, China's core CPI rose only 0.9 per cent. Price hikes for foodstuff focused on grain, meat and fowl and eggs, Li added.
According to Li, the grain price rise was due largely to the rising grain prices on international markets and growing demand both at home and abroad.
Under the price hike on international grain markets, he said, China imported 800,000 tons of cereal in the first five months of this year, down 51.5 per cent from a year earlier, and exported 5.06 million tons, up 53.5 per cent.
China built some biological fuel projects over the past few years, which also gave rise to domestic demand for grain, Li said.
Meanwhile, means of production for agricultural products experienced a price rise of 5.2 per cent in the first half of this year, a rate 3.9 per centage points higher than the year-earlier level.
Pig blue-ear disease outbreaks in 20-odd provinces and autonomous regions also affected the supply, Li noted.
He added that there existed potential risks for CPI to go further up in the second half of this year.
According to NBS data, on year-on-year term, CPI was up 2.2 per cent in January, up 2.7 per cent in February, up 3.3 per cent in March, up 3.0 per cent in April and up 3.4 per cent in May. The first quarter CPI stood at 2.7 per cent.
In related developments, retail prices of commodities rose 2.4 per cent in the first half of this year, or up 3.2 per cent in June. Factory prices of industrial products increased by 2.8 per cent in the six-month period, or up 2.5 per cent in June. Buying prices of raw materials, fuels and power supply went up 3.8 per cent in the January-June period, or up 3.4 per cent in June.
The major inflation indicator rose 4.4 per cent in June compared with a year ago, or up 0.4 per cent on the previous month.
This helped jack up CPI for the first half of this year by 3.2 per cent on the same period of last year. The growth rate was 1.9 per centage points higher than the year-earlier level.
In breakdowns, foodstuff prices rose 7.6 per cent, with grain price up 6.4 per cent, egg price up 27.9 per cent and prices for meat and fowl as well as related products up 20.7 per cent. However, prices of fresh vegetables and fruits went down 2.9 per cent from a year earlier.
Li Xiaochao noted foodstuff prices contributed 2.5 per centage points to the CPI rise in the January-June period. He said deducting prices of foodstuff and energy, China's core CPI rose only 0.9 per cent. Price hikes for foodstuff focused on grain, meat and fowl and eggs, Li added.
According to Li, the grain price rise was due largely to the rising grain prices on international markets and growing demand both at home and abroad.
Under the price hike on international grain markets, he said, China imported 800,000 tons of cereal in the first five months of this year, down 51.5 per cent from a year earlier, and exported 5.06 million tons, up 53.5 per cent.
China built some biological fuel projects over the past few years, which also gave rise to domestic demand for grain, Li said.
Meanwhile, means of production for agricultural products experienced a price rise of 5.2 per cent in the first half of this year, a rate 3.9 per centage points higher than the year-earlier level.
Pig blue-ear disease outbreaks in 20-odd provinces and autonomous regions also affected the supply, Li noted.
He added that there existed potential risks for CPI to go further up in the second half of this year.
According to NBS data, on year-on-year term, CPI was up 2.2 per cent in January, up 2.7 per cent in February, up 3.3 per cent in March, up 3.0 per cent in April and up 3.4 per cent in May. The first quarter CPI stood at 2.7 per cent.
In related developments, retail prices of commodities rose 2.4 per cent in the first half of this year, or up 3.2 per cent in June. Factory prices of industrial products increased by 2.8 per cent in the six-month period, or up 2.5 per cent in June. Buying prices of raw materials, fuels and power supply went up 3.8 per cent in the January-June period, or up 3.4 per cent in June.