China food prices continue week-on-week climb

Chinese food prices continued to rise last week with pork prices hitting a record high, stoking fears that inflation has yet to ease significantly, the Wall Street Journal reported. The latest weekly figures from the Ministry of Commerce show food continues to put upward pressure on overall prices: Pork prices rose 0.4% week-on-week to hit a record high of US$4.10 per kilogram as processors purchased more meat ahead of upcoming Chinese holidays. Prices of vegetables, edible oil, flour and rice rose at a slightly moderated pace from a week earlier, while seafood prices remained basically unchanged, the ministry said. The figures come ahead of the release on Friday of closely watched inflation data for the month of August. Most economists believe inflation peaked in July and will begin to subside in the second half, in part due to a higher base one year ago: Economists polled by Dow Jones Newswires forecast an annual incrase in consumer prices of 6.1% in August, following growth of 6.5% in July. To mop up liquidity and curb inflation, China’s central bank has lifted interest rates three times and increased bank reserve requirements six times this year.