Expert: No need to worry about prices rise

On the ground for the average person, everyday items are beginning to cost more at local supermarkets. Some people are concerned about impending inflation. But experts say they should not worry.

The survey, conducted at 36 major large and medium-sized cities across the country by the Ministry of Commerce, shows that from November 9th to 29th, the retail price of agricultural products continued to rise for three consecutive weeks.

Lu Dongming, Staff od Beijing Urban Storage Supermarket said "We have cut prices for some vegetables such as potatoes and cabbage. But for other vegetables like tomato and capsicum, they're costing more. This is a seasonal adjustment."

Experts say heavy rains and snows in some cities last month have driven the price surge for vegetables. Meanwhile, prices of grains and edible oil have also begun to rise.

Jiang Ling, Staff of Beijing Urban Storage Supermarket said "Some categories of grain are costing more. Last year saw prices falling, so compared with last year, prices this year are rising a little. But the price of flour is staying stable."

Currently, both production and supply of grain and agricultural products have remained stable. The recent price surge stems from price rises on international markets.

Qi Jingmei, Research Fellow of Economic Forecast Department, State Information Center said "The price hike in international soybean futures and the global grain market have contributed to the domestic price rise. Since farming area has been increasing in recent years in our country, together with this year's abundant rains, we have a stable and good foundation for next year's harvest and production. So, I don't think grain price will rise much next year. The grain price hike should not drive up the Consumer Price Index."

With the CPI possibly returning to positive territory, many people are starting to worry that continual price hikes could trigger inflation.

Qi Jingmei said "I personally believe that the current CPI rise is not much, compared to earlier big drops. It won't spur big jumps in prices and it won't create obvious inflation pressure. I think it is acceptable."

In any case, experts say a CPI rise indicates strong growth in the economy. It should further boost industrial development and create more jobs.