As the pressure for QE3 is mounting due to the recent plunge of stock prices all over the world, the worry for inflation is at the same time holding back the thirst for it.
The Chinese government is also paying special attention to this issue. From August 15 to 21, according to the monitoring of the Ministry of Commerce, the price of edible farm produce rose slightly, while price of material for production remained stable.
The average wholesale price of 18 vegetables rose 2.1% compared with that of last week (same as below). Among that, the prices of leafy vegetables such as lettuces, Chinese cabbages and rapes dropped have increased by the largest margin, with an increase of 15.1%, 14.1% and 11% respectively. With the Mid-Autumn Festival approaching, the demand of eggs for moon cakes by some food processing enterprises increased, and the retail price of eggs saw 0.8% rise. The prices of grain and oil remained stable with slightly rise, of which the prices of peanut oil, soybean oil, rapeseed oil and rice rose 0.5%, 0.3%, 0.3%, and 0.3% respectively, and the prices of flour remained the same with that of last week. Price of meat fluctuated slightly, of which the prices of mutton, chicken and pork increased by 0.6%, 0.2% and 0.1% respectively; and the price of beef dropped by 0.1%. With more marine products in the market, and freshwater fish in major production regions such asJiangsuandHubeientering market, the average wholesale prices of 8 categories of aquatic products dropped by 0.9%, 0.1 percentage point higher.
Of material for production, the prices of steel, chemical products, construction materials and raw materials for light industry increased, the price of minerals remained stable, and prices of energy, materials for agricultural production, non-ferrous metals, and rubber dropped. The price of steel increased 0.4%. The prices of chemical products saw a 0.3% increase. The prices of construction materials saw 0.2% increase, among which, prices of lumber and glass increased by 0.6% and 0.5% respectively, and price of cement decreased by 0.3%. The price of energy dropped 0.1%. Among that, the prices of crude oil and finished oil dropped by 1% and 0.2% respectively, and the price of coal remained stable. The prices of materials for agricultural production dropped by 0.1%, among which, price of fertilizer saw 0.3% decrease, and prices of seeds and pesticide saw 1% and 0.3% increase respectively. The prices of non-ferrous metals dropped 0.2%. And the price of rubber dropped 0.7%.
Source: Ministry of Commerce Website; http://english.mofcom.gov.cn/aarticle/newsrelease/significantnews/201108/20110807707915.html