The average price of whole eggs in China rose by 7.3 percent on August 11 compared to July 21, and may climb as high as 9.8 yuan (US$1.50) per kilogram by the end of September, according to Guo Liye, an agriculture analyst at the Distribution Productivity Promotion Center of China Commerce.
Decreasing egg output due to weather factors, rising cost of feed stuffs and increasing egg purchases from moon cake makers ahead of the Mid-Autumn Festival in September are the primary reasons for the price increases, said Guo. The egg prices have raised inflation concerns, as the country's consumer price index hit a 30-month low in July, but Guo said that a price hike should have a limited effect on inflation because of the relatively small weighting of egg prices in the index.
Inflation is expected to stay at 1.9 percent and 2.5 percent, respectively, in the third and fourth quarters of 2012, given the price rise in agricultural products and gasoline, according to China Merchants Securities. Local authorities have offered temporary price subsidies to low-income groups in Guangdong and Shandong provinces and Tianjin in the second quarter, as the prices of some daily necessities are still high despite a drop in the consumer price index growth.
Decreasing egg output due to weather factors, rising cost of feed stuffs and increasing egg purchases from moon cake makers ahead of the Mid-Autumn Festival in September are the primary reasons for the price increases, said Guo. The egg prices have raised inflation concerns, as the country's consumer price index hit a 30-month low in July, but Guo said that a price hike should have a limited effect on inflation because of the relatively small weighting of egg prices in the index.
Inflation is expected to stay at 1.9 percent and 2.5 percent, respectively, in the third and fourth quarters of 2012, given the price rise in agricultural products and gasoline, according to China Merchants Securities. Local authorities have offered temporary price subsidies to low-income groups in Guangdong and Shandong provinces and Tianjin in the second quarter, as the prices of some daily necessities are still high despite a drop in the consumer price index growth.
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