Economy

China's food prices cooling: commerce ministry

(Xinhua)
Updated: 2011-03-21 22:10

BEIJING - Prices of daily necessities have been cooling in China since the Spring Festival holiday ended about one month ago, the Ministry of Commerce (MOC) said on Monday.

Related readings:  China Feb CPI up 4.9%  China targets 4% CPI rise, price stability top priority  CPI likely to drop in February: NDRC  The poor need separate CPI

Compared with the Spring Festival holiday, wholesale prices of eggs fell by 14 percent, and prices of 26 major vegetables declined by 10 percent, according to the MOC's department of market operations regulating.

The data also showed that prices of mutton and beef went down by seven percent and three percent, respectively.

The department predicts the prices of daily necessities will continue to fall as the drought that hit north China has eased and the government is ramping up support for agricultural production.

Experts said that, the cooling of food prices is expected to ease inflationary pressure, as food prices account for about one third of the total CPI.

China's consumer price index (CPI), a main gauge of inflation, rose 4.9 percent year on year in February, the same level as January's, the National Bureau of Statistics said earlier this month.

The central government would work to keep the CPI increase at about four percent for 2011, according to Premier Wen Jiabao's government work report that was delivered earlier this month.