1970-01-01 08:33:27
By Song Hongmei
A recent survey of 2,538 people in 29 Chinese provinces suggests that the rise in food prices has had a negative impact on people, although some report higher income from wages and financial investments.
The survey, jointly conducted by the China Youth Daily and Qtick.com, asked about food price concerns, and discovered that 90.9 percent of respondents agreed they had been affected by the rising prices. Seventy-eight percent claimed that the rise has impacted their consumption interests negatively.
The constant rise of food prices have pushed up the consumer price index (CPI). The CPI in May rose 3.4 percent, the highest monthly increase in more than two years. May was also the third consecutive month this year to have a CPI of over 3 percent, the warning line set by the central bank.
Ordinary consumers may not be concerned with the CPI index and the warning line, but they felt the pinch from the rising food prices in local markets, as discovered by the survey.
Pork wholesale prices polled by the Ministry of Commerce in 36 large and medium-sized cities averaged at 18.57 yuan (US$2.45) per kilogram on July 11, up nearly 30 percent from the 14.25 yuan on May 11. The average retail prices for lean pork have exceeded 22 yuan per kilogram.
In Beijing, the price of eggs climbed as high as 9 yuan per kilogram last week, 25 percent higher than that of just a few months ago. Jinlongyu soybean oil costs 49.9 yuan per five liters, an increase of eight percent from a few months ago.
Due to the rising prices of soybean and wheat, the price of sauce in Kunming, capital of Southwest China's Yunnan Province, rose about 20 percent to 4.8 yuan per kilogram.
A shop of steamed stuffed buns closed down in a district of Guangzhou, capital of South China's Guangdong Province, due to the rising cost of meat.
Income levels on the rise as well
Meanwhile statistics show that Chinese people earn more from their work and the financial investments, leading to the question of whether rising wages can offset the rising cost of living.
Excluding inflationary factors, the wages of employees in China have seen an averaged annual growth of 12 percent in the past four years, the fastest growth since the country's reform and opening up in the late 1970s, according to figures from the China Association for Labor Studies.
Individual investors have obtained an average return of 244.6 percent from the bullish stock market in the past 17 months from January 2006 to this May, according to Shenyin and Wanguo Securities.
Going against the trend, 59.2 percent of those polled said the bullish stock market has had no impact on them and 44.6 percent said the national average income rise has nothing to do with them.
However, nearly 78 percent agreed that higher grain and pork prices have definitely caused the rise of their living costs.
According to the survey, high income earners benefit more from the stock market and middle and low income earners are more sensitive to the rise in consumer goods.
Among respondents with a monthly salary of more than 6,000 yuan, 37.4 percent have gained from the stock market and 43.4 percent benefited from the wage rise. Among respondents who earn less than 1,000 yuan a month, 9.6 percent have seen returns from stock investments and 20.6 percent are beneficiaries of the rise in wages.
Government measures
The recent rises of food prices have increased farmers' income and raised the living cost of most people as well, said an official at the pricing department of the National Development and Reform Commission last week.
He said the government will take measures to relieve the impact of rising food prices on the lives of low-income people.
On July 3, the pricing authority of the Lanzhou municipal government ruled that the price of a regular bowl of beef noodle, a regular meal of the Northwest China city's residents, should not exceed 2.50 yuan.
Criticizing the local government, China's top economic planner and commentators on traditional and modern media outlets across the country tagged the Lanzhou authority as a violator of market rules.
However, 81.9 percent of respondents said yes to the decision of capping the price of beef noodles. The less the respondents earn, the stronger their support seems to be.
"I disapprove of the measure taken by the local government, but I applaud its aim. Food prices should not rise any longer," said a respondent.
(Chinadaily.com.cn)