Chinese food is expensive because of floods and Covid-19

Chinese food is expensive because of floods and Covid-19 3

Chinese food is expensive because of floods and Covid-19

Yesterday’s data (July 14) from the Chinese Ministry of Commerce showed that agricultural product prices here increased by 0.8% last week.

“The price increase is mainly due to reduced supply and increased demand,” Gao Huan, director of retail and manufacturing research at consulting firm Alvarez & Marsal, said on CNBC. “In fact, this trend may continue.”

The current floods in China are considered the worst since 1998. Direct economic losses have exceeded 86 billion yuan ($12.3 billion), with more than 29,000 homes destroyed and

People transport vegetables at a wholesale market in Beijing (China).

`We forecast July CPI to increase 2.7% year-on-year, due to the supply shock caused by flooding in the South,` chief economist Ting Lu at Nomura said in a report last week,

Chinese officials are closely monitoring food price developments, because this is an important factor in maintaining social stability.

In February, data from research firm Wind showed that Chinese food prices increased by 21.9% over the same period last year, exceeding the increase of 20.9% in January. The cause was a shortage of supply due to low-quality products.

Covid-19 has already had a strong impact on the food and beverage industry, due to social distancing orders causing people to stop eating out.

In the first half of this year, more than 105,000 businesses related to food and beverages have dissolved or ceased operations.

Analysts at stock brokerage Nanhua Futures said the impact on food prices would be short-lived.

China’s increased purchases of foreign food have not helped cool domestic prices.

The resurgence of the pandemic at a food market in Beijing has put even more pressure on prices.

Rising pork and food prices in general have pulled up China’s CPI.

Zong Liang – researcher at Bank of China said China’s inflation this year will be below 3%, which is quite stable.

However, for the economy in general, developments such as the resurgence of the pandemic also mean that growth will recover at a slower pace.

As for restaurants, the road ahead will be very difficult, as both food prices and consumer behavior change.

He believes that restaurants need to be more creative to survive in the post-pandemic economy, with strategies such as taking advantage of online sales channels and frozen foods, improving supply chain efficiency and reassuring consumers.

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