September 28, 2011

Food prices rose in the week to Sunday (Sep 25), continuing a broad inflationary trend led by vegetable and fish, while pork tapered down for the first time in two months, the Ministry of Commerce announced Tuesday.

Vegetable prices were up 4.2% compared with the preceding week, while fish prices rose 1.6%-2.2%, it said.

The ministry's data indicate vegetables may have replaced meat as a culprit behind inflation, with prices steadily pushing upward since August 15.

The price pressure on vegetables came at a time when the government appeared to have tamped down pork prices, a key contributor to inflation in recent months.

Meat prices last week were up 0.3%-1.3%, a relatively moderate pace compared with other major food categories, while pork fell 0.6%, snapping two months of increases.

The government has sought to quell pork prices by releasing its stockpiles of the frozen meat and, as a longer-term remedy, using fiscal measures to encourage hog production.

China typically faces higher price pressures during the autumn as the country celebrates the Mid-Autumn Festival in September and the National Day holidays in October, both of which are high-consumption periods.

Edible oil prices rose 0.2%-0.3% in the week to Sunday, while egg prices rose 0.1%, the ministry said.