September 30, 2011
China will see a mild rise in grain prices in the near term, due to increasing production costs, an agricultural official said Thursday (Sep 29).
Average prices of rice, wheat and corn rose 10.5% on-year to reach RMB119.82 (US$19) per 50 kg last month, and were up 0.8% from the previous month, said vice minister of agriculture Chen Xiaohua.
The production costs of the three crops grew at an annual rate of around 10% in recent years, which led to a rise in grain prices, according to data from the National Development and Reform Commission.
High global grain prices and the country's excessive liquidity intensified inflationary expectations among consumers. The country's growing demand for food also boosted grain prices, Chen said.
China's inflation rate hit 6.2% in August, driven by a 13.4% increase in food prices.