Survey Showed that Inflation Grew by 3 Percent in November
Based on a survey that was conducted by the National Bureau of Statistics said that the consumer price index which is the gauge of inflation in the city has increased by more than 3 percent in the last month from November 212. The survey also showed that the food prices has also grown more than 4 percent from last month as well.
Compared with October were inflation and food prices went down by .2 and .8 percent respectively. The report also stated that the decline in food prices was the result of having a stable and abundant supply of vegetables in the market. In contract to prices of dairy products that grew by 1.4 percent in October which was due to the increase in labor costs, materials and logistics.
Because of the inflation more residents are opting to do their shopping in Hong Kong super markets because of its lower prices and the thought of the items in Hong Kong are of better quality. Experts think the high prices are giving residents the impression of how expensive life in one of the first tiered cities such as Shenzhen. Even with the reports from the survey offices predicting that the growth of inflation in Shenzhen will be no more than 3 percent.
Also the gauge of inflation of producer price index at the wholesale level also saw a 1.8 percent decrease this year coming from November of 2012. And in October the producer price index rew only .2 percent and a falling producer price index is being considered as a sign of a slow economic growth that is paired with an insufficient demand in the city.