Economy

China to see decline in farm produce prices

(Xinhua)
Updated: 2011-03-22 17:55

BEIJING - China's farm produce supplies have increased amid warming weather and the country will see a decline in prices soon, the commerce ministry said Tuesday.

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Supplies of necessities are adequate following the country's traditional Spring Festival, so prices are expected to fall steadily, Yao Jian, spokesman of the Ministry of Commerce, said at a regular news briefing.

Government efforts to support agricultural production, especially during the drought period, will help stabilize the supply of both grain and cooking oil, he said, adding that prices of these products will remain stable.

Major farm produce prices have been dropping since the beginning of February, according to the ministry. During the week ending March 20, wholesale prices of 18 vegetables in 36 major cities fell 3.4 percent from the end of January. Retail prices of eggs went down by 3.0 percent.

China's consumer price index (CPI), a main gauge of inflation, rose 4.9 percent year-on-year in February the National Bureau of Statistics said earlier this month.