Domestic prices for pork, the country's staple meat, would
remain high due to increased consumer demand at the year's end, the
Ministry of Commerce said in forecast on Wednesday.
Demand for pork usually surges as meat processors prepare for
the approaching New Year's Day festival. Also, people in some
regions have a custom of making salted pork at home for the new
year, which could also drive up pork demand.
The price of pork almost doubled this year before starting to
decline from mid-August to mid-October. However, prices have
rebounded since.
The wholesale price rose 1.4 percent last week over the previous
week in advance of the coming festival. It was the 11th consecutive
week in which pork prices rose.
The wholesale price of beef also rose 1.4 percent in the same
week, while that of mutton was up 0.6 percent.
Prices of cooking oil rose 2.0 percent last week, with peanut
oil up 2.4 percent and bean oil up 2.0 percent.
The ministry said bean oil prices were expected to stabilize,
albeit at high levels, as consumers held off purchases due to
recent price rises.
The price of grain went up 0.2 percent last week. The ministry
said the increase largely reflected expanded demand of processing
enterprises that are preparing for the holiday.
It also said wheat supplies would improve with more national
stockpiles released into the market. Supplies would increase even
further since the country had scrapped export rebates for 84 farm
products including wheat.
Huge rises in food prices like grain, pork and cooking oil
lifted the consumer price index (CPI) to an 11-year high of 6.9
percent in November, well above the government's 3 percent
target.
(Xinhua News Agency December 27, 2007)
