February 9, 2012

China's agricultural commodities prices drop

Following persistent rise in the previous several weeks, China's agricultural product costs began to drop in the week ending February 5, the Ministry of Commerce stated Tuesday (Feb 7).

Wholesale prices of 18 staple vegetables dropped 5.8% on-week. Meat prices fluctuated slightly last week, with prices of pork down 0.8% while mutton, beef and chicken prices up 0.2%, 0.6% and 0.2%, respectively.

Retail prices of grain and edible oil gained moderately last week. Egg prices fell by 0.4% from one week earlier.

Wholesale prices of eight varieties of aquatic products edged up 0.2% as the freezing in areas around Huanghai Sea and Bohai Bay reduced market supply of sea food.

Food prices have a one-third weighting in the calculation of China's consumer price index (CPI), a major gauge of inflation. The CPI eased to 4.1% in December, the slowest rise in 15 months.

China is to publish its main economic data, including the CPI, for January on Thursday.