CCTV.com - CNTV English - CCTV News

Drought intensifies inflation expectations

02-15-2011 11:36 BJT Special Report:China’s Economic Data for Jan. |

Watch Video

Play Video

A severe drought sweeping across the northern provinces of China, has strengthened expectations of surging food prices. Some market observers say inflationary pressures may rally even further. CCTV reporter Yin Hang takes a look at whether those concerns are warranted.

A direct impact of the severe drought in China's northern provinces is a hike in the cost of flour. In Yiwu, a city in eastern Zhejiang Province, the wholesale price of flour has climbed rapidly.

Currently, the wholesale price for 50-kilos of flour stands at 72 yuan, surging 2.5 yuan compared with two weeks before.

Businessman in Yiwu, Zhejiang province said "We feel the prices of flour have been surging these days. It's mainly caused by the drought in the north."

In order to prevent further price hikes, many cities have adopted measures to ensure abundant market supply.

In Shanghai, the retail prices of rice has been largely shielded from fluctuations this year.

One shopkeeper in Shanghai said "The rice price is keeping stable this year. There is basically no price fluctuation. We also adopted some price cut measures for festival promotions."

The wholesale purchase prices of rice surged more than 20 percent at the end of last year in Shanghai. It pushed retail sales prices 0.2 yuan per kilo higher than in the previous month.

But experts say the price surge was caused by surging production and transportation costs.

Experts believe there will not be massive rice and flour price hikes, because of the sufficient reserves.

Editor:Xiong Qu |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program