Chinese farm produce prices up for 11th consecutive week

Farm produce prices in 36 large and medium cities in China have risen for 11 weeks in a row, state media reported. Aggregate produce prices rose 0.2% week-on-week as the approaching Mid-Autumn Festival and National Day holidays stimulate demand.  Prices for eggs, pork, mutton and beef increased by 1.4%, 0.5%, 0.5% and 0.2%, respectively. Wholesale prices for 18 types of vegetables declined last week by 0.6%. The net result is increased consumer price inflation. A report by UBS Securities said that the consumer price index (CPI) may reach 3.7% in August, in part due to the increasing cost of agricultural products. China’s CPI rose 3.3% year-on-year in July, the highest level in 21 months.