BEIJING, May 28 (Xinhua) -- Agricultural prices had fallen for the seventh
consecutive week as of Sunday, indicating that the quake in Sichuan Province
hasn't had a major impact on food prices, the Shanghai Securities News reported
on Wednesday.
The newspaper cited the latest statistics from the Ministry of Commerce
(MOC), which showed that farm produce prices in 36 medium-sized and large cities
fell 0.7 percent between May 19 and 25 from a week earlier.
Of the 58 main types of agricultural products, 31 saw prices decrease, 17
saw a rise and 10 were unchanged.
Vegetable prices slid 5.6 percent week-on-week, reflecting seasonal
factors, while wholesale prices of pork and lamb eased 0.5 percent. The
wholesale price of beef leveled off and grain prices remained stable, according
to the MOC.
Farm produce prices dropped 2.9 percent month-on-month in the first three
weeks of May, which showed that food price pressures had weakened, according to
chief economist Ha Jiming of China International Capital Corp.
Ha predicted that the consumer price index (CPI) pressure would ease in
May, and the full-year figure would be 6 percent to 7 percent, taking non-food
prices into account. The CPI rose 8.5 percent year-on-year in April.
Food prices account for about a third of the CPI in China.
However, Wei Fengchun, a senior analyst at South China Securities, said
that the quake would stimulate consumption and the CPI was still under pressure.
The May 12 earthquake was expected to have an impact on inflation, as
Sichuan Province and Chongqing Municipality, two hard-hit areas, together had a
large food production base, said Robert Subbaraman, chief economist with Asia
Ex-Japan of Lehman Brothers.
He held that the impact would be less than that of the winter weather that
paralyzed transportation, cut power and disrupted goods delivery across south
China.
Sichuan produces 9.5 percent, 8 percent and 6 percent of the country's
pork, edible oil and grain, respectively, the MOC said last week.