World Bank economists said a sharp rise in international grain prices is to blame for the soaring cost of food across the mainland, the South China Morning Post reported. Soaring wheat prices have
pushed up prices, particularly pork and eggs, calling for the Chinese government to address rising
living costs for the poor. But the increase in grain prices is a global, not a China phenomenon, World Bank economist said. World grain prices rose 20% since April, boosting the price of food on the mainland up by
7.1% last month compared with a year ago, according to World Bank reports. Other factors contributing to soaring global food prices include the rise of bio-fuel in the United States, which accounts for around 75% of world maize production, which is competing with food production for both water and land, Huang Jikun,
director of the Center for Chinese Agricultural Policy at the Chinese
Academy of Sciences said. The integration of China's food market with the global market has made it increasingly sensitive to changes in world food prices, Huang said.
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