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Analysts Forecast Lower CPI, Higher Egg Prices - CRIENGLISH.com
The price of eggs has jumped to 5 yuan per kilogram in nearly a month, Securities Daily reported on Monday.
The wholesale price of eggs in Beijing Xin Fadi Agricultural Products Wholesale Market on Sunday was 10.2 yuan per kilogram, an increase of 57 percent from the price on May 1 of 6.48 yuan.
Xinhua News Agency and National Agricultural Market System of Agricultural Price Monitoring data shows that, the price of eggs in some areas has increased more than 20 percent over the past 10 days, including areas in Tianjin, Jilin, Heilongjiang, Shanghai, Henan and Ningxia.
According to industry analysts, the main reason for the price hike is a short-term supply shortage.
The number of egg-laying hens fell due to tumbling egg prices last November. Also, egg-laying capacity has been affected, supposedly by high temperatures. To add to the problem, farmers are holding out for higher prices during the upcoming Dragon Boat Festival.
"Disease has decimated egg-laying hens in some areas," said Shu Anli, an analyst at Shen Nong, a website for agricultural market information. "But in terms of egg-laying hens changing the price of eggs, the supply for the national egg market is adequate this year."
Data from the Xin Fadi Market website shows that the wholesale price of garlic on Sunday reached 8.2 yuan per kilogram, up 49 percent from the price on May 31 due to the drought in the northern fields.
Still, industry insiders believe that this sudden rise in food prices is indicative of the downward trend of China's consumer price index (CPI) in May, a major gauge for inflation which will be released by the National Bureau of Statistics on June 9. Food prices weigh heavily into the calculation of the CPI.
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