Photo: gruntzooki on flickr
China may seem to have its inflation problem under control, but a whole new round of consumer price increases is about to be unleashed on the country’s population, according to China Daily.They report, citing unidentified sources, that four of country’s biggest consumer product producers are about to raise prices 5 to 15% in the month of April.
What’s most alarming is that these four producers (Liby, Procter & Gamble and Nice Group, and Unilever) make up four fifths of all consumer products in China. That means this price increase isn’t just going to impact some or part of the Chinese market, but a large part of it.
The driver for this increase in prices: food and fuel costs.
So while China may have its bank lending problem under control, the food and fuel problem may be about to surface once again.