There is no agreement among analysts about the trend in vegetable prices.
Photo from CFP
By XIN Yuan
The price of vegetables increased sharply in October, they are now more expensive than pork in some regions. On October 22, the average price of the 28 kinds of vegetables monitored by the Ministry of Agriculture was 5.68 yuan (US$0.89) per kilogram, up 26.7 percent compared with September 30.
It is normal for vegetable prices to rise in late fall and early winter but the rain in northern China has worsened the situation this year. Northern provinces have been hit by more than five times the normal amount of rain since September, both production and transportation were impacted.
Pork prices, on the other hand, decreased by five percent in September, and are 47 percent off compared with last year.
Vegetable prices will continue to go up in the next few months as holidays like New Year and the Spring Festival approaches.
However, SUN Yongle of Hongta Securities believes that the high prices will not last as vegetables grow fast and the government will take measures to control prices. “The increase of vegetable prices would not make much difference to the CPI since fresh vegetables only account for two percent,” Sun told Jiemian News.
Director of the Agriculture Ministry TANG Ke announced on October 20 that authorities would take action to facilitate the transportation of fresh produce, update market information and ensure stability.