April 12, 2012

China's food prices decline for third week

Majority of China's food prices dropped in the week to Sunday (Apr 8), reporting a third consecutive week of declines, the Ministry of Commerce said Tuesday.

China's food-price movements indicate inflationary pressures as food accounts for about a third of its consumer price index.

Improving weather conditions pushed vegetable prices down 5.4%. The pace of decline accelerated from last week's 1.3%. Vegetable prices had risen 10% in March.

Pork, a major indicator of inflation, fell 1.2% in a 10th consecutive weekly decline, the ministry said.

Pork prices have fallen 12.5% since late January. Beef prices fell 0.8% while chicken prices fell 0.1%. Egg prices fell 0.2% on week.