A recent survey of 2,538 people across 29 Chinese provinces
showed that the rise in food prices had overall a negative impact
on people.
The survey, jointly commissioned by the China Youth Daily
and Qtick.com, investigated the fallout from the rise in food
prices, with 90.9 percent of respondents reporting they had been
affected by the rise. 78 percent also claimed the rise had also had
a negative influence on their consumption habits.
The unfettered soaring of food prices drove up the consumer
price index (CPI) to 3.4 percent in May, the highest such rise in
two years. However, warning bells have been sparked by the CPI
staying above 3 percent for 3 consecutive months by May, above the
central bank's warning line.
Ordinary consumers may not feel too concerned with the CPI index
and the warning line, but they will certainly feel the pinch from
local markets becoming more expensive.
Ministry of Commerce statistics put pork wholesale prices at
18.57 yuan (US$2.45) per kilogram on July 11 in 36 cities
nationwide, up close to 30 percent from the 14.25 yuan seen on May
11. The average retail prices for lean pork have exceeded 22 yuan
per kilogram.
In Beijing, eggs were a further concern leaping to 9 yuan per
kilogram last week, 25 percent higher than that of just a few
months ago. Jinlongyu soybean oil costs 49.9 yuan per five liters,
an increase of eight percent from a few months ago.
Government measures
The government would soon take measures to alleviate rising food
prices and their impact on low-income people, said an official at
the pricing department of the National Development and Reform
Commission last week.
On July 3, the Lanzhou municipal government ruled that a regular
bowl of beef noodles should never exceed 2.50 yuan, an attempt to
minimize the impact on people's living costs.
Criticizing the local government, China's top economic planner
and national media slammed the Lanzhou authority as breaking market
rules.
However, 81.9 percent of respondents supported the Lanzhou
government's decision to cap the price of beef noodles, a feeling
particularly seen among lower earners.
(China Daily July 17, 2007)
