Farm produce prices fall for third week

Updated: 2011-11-02 09:53


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BEIJING-- Farm produce prices in China continued to fall for a third week, according to a report released by the Ministry of Commerce on Tuesday.

In the week ending on Oct 30, the wholesale prices of 18 staple vegetables dropped by an average of 2.2 percent from the previous week, the report said.

Meanwhile, eight types of seafood products saw an average price decline of 1 percent, and the prices of pork and eggs fell one percent and 0.6 percent week-on-week, respectively.

Pork prices have dropped 4.7 percent since mid-September, the report said.

The price of chicken declined by just 0.1 percent, while that of beef and mutton posted a 0.5 percent increase during the week.

The prices of rice and flour both rose 0.2 percent, and edible oil prices maintained stable from a week ago, according to the report.

The report attributed the continuous drop in farm produce prices to an increase in market supply, which was mostly due to seasonal factors and government-led improvements in the country's produce distribution system.

Food prices, which account for nearly one-third of the basket of goods that are used to calculate China's consumer price index (CPI), have been the main driver of inflation this year.

The index eased slightly to 6.1 percent year-on-year in September from 6.2 percent in August, but far above the government's full-year target of 4 percent.

To keep inflation in check, the People's Bank of China has raised interest rates three times so far this year and hiked its reserve requirement ratio six times to drain excessive money out of the market.

China will continue to use strong measures to keep consumer prices stable and fighting inflation will remain the government's top priority this year, the State Council, or China's Cabinet, said Saturday.