Inflation Rates Increase Due to Price Hike in Vegetables
A rise in vegetables prices last month have contributed to April’s .8 percent increase in inflation in March. Based on a survey done by the National Statistics bureau, prices of fresh vegetables have risen more than 31 percent in local markets last month compared in March. This means most prices of vegetables have doubled.
The increase was mainly due to the frequent rainfall in April which affected the production of vegetables and Shenzhen depends heavy on vegetable supplies from outside the city. Residents used to go to markets to buy fresh vegetables because prices are much lower than supermarkets but as of now the price of vegetables in the market is growing fast. Residents also feel that a price decrease is impossible.
Last month alone food prices in Shenzhen have increased by 1.9 percent from March and 2.6 percent in April 2012. Furthermore the city’s average rent has also increased by 9 percent compared to April 2012 and survey have showed that the recent national 20 percent tax on housing discouraged homebuyers and tightened the rental markets.
Inflation growth in Shenzhen is 0.1 percent slower that the national rate last month and the price survey department predicted a stable year on year growth for Shenzhen this month.