Ground Report | New Delhi: Effect of rising inflation in China; China’s largest soy sauce maker has increased the prices of its products, which clearly shows how much inflationary pressure has increased on the world’s second largest economy.
Foshan Haitian Flavoring and Fund Co. has said that it is going to increase the prices of its products by up to seven percent by the end of this month. The company has cited the cost of material, expensive transport and expensive electricity as the reason for this decision.
As the world recovers from the outbreak of the pandemic, the cost of basic necessities is increasing.
The company has told in the information given to the Shanghai Stock Exchange that these increased prices will be applicable on soy sauce, oyster sauce and other types of sauces from October 25.
The company says that the increase in the price of the products is aimed at making its business more “sustainable” in view of the rising cost. (Effect of rising inflation in China)
In addition to soy and oyster sauces, Foshan manufactures and distributes other products including Haitian vinegar, chicken stock, monosodium glutamate and oils.
Rising inflation and power crisis in China
In recent weeks, the price of electricity in China has seen an increase. Suppliers are struggling with the rising demand for electricity and power cuts have affected some parts of the country.
Due to floods in areas of China’s big coal mines, the prices of coal used in the country’s power plants are also touching the sky.
The country’s largest coal-producing province, Shanxi, has received heavy rains in recent days after flooding in the Henan mine area in July. This pushed up the price of thermal coal by up to 8% on the Genzo Commodity Exchange on Tuesday.