PBC figures: food and fuel costs rise in China

by Richard Kilner

Story link: PBC figures: food and fuel costs rise in China

The People’s Bank of China (PBC) has released figures showing the change in corporate goods prices for the month of May.

On an annual basis of comparison, goods almost all rose in cost, whereas the monthly comparison revealed a more mixed picture.

Cars did not change in cost from April-May, and actually fell on a year-on-year basis by 1.5%.

The only other goods to fall on an annual comparison were copper, which saw its price decrease by 1.2%, and non-ferrous metals generally which fell by 2.3%.

The highest annual climbers in cost were pork and beef, both of which soared in cost by more than 40%, caused at least in part by globally rising food prices combined with swathes of land being struck by the worst winter weather for fifty years.

Vegetable oil also increased sharply, up 39.4%, with coal and crude oil (also affected by the worldwide economic situation) up in cost by 38.5% and 33.9% respectively.

Monthly price changes were naturally more modest, with the vast majority below 5% in either direction.

Vegetables fell by the most, slumping in price by 19.6% (with vegetable oil falling 8%) compared with April’s prices.

Coal and steel rose the most, up 6.5% and 5.5%, with relatively little change for other products.

Overall the Chinese situation appears to be broadly stable, with the exception of items such as food, fuel and raw materials, all of which have been affected by the ever expanding domestic market and international demand.