The rising cost of food has prompted calls for the government to take measures to stabilize prices, which climbed 15.4 percent year-on-year in July, with the cost of pork and other meat jumping 45.2 percent.

 

The National Bureau of Statistics said yesterday the price of eggs rose 30.6 percent and edible oil 30.1 percent over the same period last year, while aquatic products were up 5.4 percent and fresh vegetables 18.7 percent.

 

But analysts said the latest price increases are mainly due to a seasonal short supply of pork, chicken, fresh vegetables and other products.

 

"Farmers reduced pig and poultry numbers in recent years due to poor access to information and low prices, and that caused an imbalance in supply and demand," said Li Yiping, a professor at Renmin University of China's School of Economics.

 

Meanwhile, a surge in global grain prices pushed up costs in the livestock, food processing and catering industries, leading to a general increase in the country's food prices.

 

"If the government offers timely and transparent guidance to farmers, supply pressure can be eased and the prices will stabilize," said Li, adding that this process will take time.

 

He also said the price rises are reasonable and will boost farmers' income and help narrow the gap between urban and rural wages.

 

Economists and the industry have called on the government to take action against food producers and sellers that raise prices to unreasonable levels.

 

The National Development and Reform Commission (NCDR) urged pricing departments to take action to prevent price cartels by food companies.

 

Instant noodle manufacturers said last month they would raise prices due to the increased cost of oil, flour and seasonings.

 

Lawyers said the move was not fair to consumers.

 

"Price collaboration between businesses in any industry should be regarded as illegal," said Qiu Baochang, a lawyer who has written to the NDRC protesting the instant noodle price hike.

 

(China Daily August 14, 2007)