Companies

Unilever China raises prices after fines

(Xinhua)
Updated: 2011-05-25 13:14

BEIJING -- Unilever (China) Co, Ltd has raised the prices of some of its products in China three weeks after it was fined by the Chinese government over spreading news of price hike.

Many supermarkets and shopping malls in China's southern city of Guangzhou have been informed about the price hike from the company, the Guangzhou Daily reported Wednesday.

Unilever's brands in China, which include Lux and Hazeline, have posted 10-percent price increases, the newspaper said after visiting some supermarkets in Guangzhou.

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The company was unavailable for comment.

China's top price regulator announced on May 6 that Unilever would face a fine of 2 million yuan ($303,000) over its statements of planned price hikes that contributed to the public's inflationary expectation and triggered panic buying.

The newspaper quoted an insider as saying that the price issue became very sensitive for the company after it was fined.

Unilever promised to postpone the price hike, but did not deny such a possibility in the future.

Rising costs in crude oil and domestic logistics have intensified the pressure for consumer product manufacturers, said Yu Xueling, secretary general of the chamber of commerce of consumer product of Guangdong province.

The Chinese government has said the fight against the stubbornly high inflation is the top priority for this year.

The National Development and Reform Commission (NDRC), China's top economic planner and price regulator, pledged to step up efforts to monitor and supervise price fluctuations.

It vowed to punish those who intentionally spread the news of price hikes that could trigger panic-buying.