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Increasing Prices Spark Panic Buying in China
18 Dec 2009
A wave of panic buying has swept across China, sparked by the communist regime’s announcement that food prices will increase.
When supermarkets in Beijing began rationing items, reports emerged that several elderly customers were injured in the rush to buy. According to one Beijing resident, people rushed to buy products that could be stored for long periods of time.
The resident said: “Whenever there is a price increase for grains, cooking oils, eggs, or meat, people worry and try to stock up. If any of these items sell out, a panic will ensue, and people will rush to the store with the lowest price.”
Sudden change from deflation
A Dec. 11 report from the National Bureau of Statistics showed a consumer price increase of 0.6 percent—a notable change, since this figure had been declining every month since last February.
Food prices are a major component of the consumer price index and may have also been driven higher by the early snowfall, which caused disruptions in the transport of food.
In addition, the communist authorities have been setting prices for many key resources, and consequently, consumer prices in China may not accurately reflect the true state of supply and demand. The regime is now moving to change this system, in order to ease supply bottlenecks that were caused by the previous arrangement.
Public frustration
According to one supermarket manager, panic buying produces a negative effect for consumers — it may actually cause the price increase to kick in sooner. Inflation has also been reported.
A Shanghai resident, who called the Sound of Hope Radio, said, “The news reported that the price of cooking oil will increase by 10 percent, but there will be no increase in our wages.”
He compared the current situation to the previous occurrence with gasoline prices. When the price of oil was US$150 per barrel, he could buy gas for US$3.30 per gallon. When the price of a barrel dropped to US$75, he had to pay US$3.60 per gallon.
Another Shanghai resident said that the price of rice has doubled, and a Beijing resident said that prices for green beans, cucumbers, and tomatoes have quadrupled.
“Every vegetable is expensive. My salary is only enough to buy food. One month’s salary isn’t sufficient to afford a shirt, or pair of shoes,” the Beijing resident said.
Though the communist authorities have dismantled many sectors of the planned economy, many prices are still subject to the regime’s control, especially those of energy and resources.
Read the original Chinese article
.
18 Dec 2009
A wave of panic buying has swept across China, sparked by the communist regime’s announcement that food prices will increase.
When supermarkets in Beijing began rationing items, reports emerged that several elderly customers were injured in the rush to buy. According to one Beijing resident, people rushed to buy products that could be stored for long periods of time.
The resident said: “Whenever there is a price increase for grains, cooking oils, eggs, or meat, people worry and try to stock up. If any of these items sell out, a panic will ensue, and people will rush to the store with the lowest price.”
Sudden change from deflation
A Dec. 11 report from the National Bureau of Statistics showed a consumer price increase of 0.6 percent—a notable change, since this figure had been declining every month since last February.
Food prices are a major component of the consumer price index and may have also been driven higher by the early snowfall, which caused disruptions in the transport of food.
In addition, the communist authorities have been setting prices for many key resources, and consequently, consumer prices in China may not accurately reflect the true state of supply and demand. The regime is now moving to change this system, in order to ease supply bottlenecks that were caused by the previous arrangement.
Public frustration
According to one supermarket manager, panic buying produces a negative effect for consumers — it may actually cause the price increase to kick in sooner. Inflation has also been reported.
A Shanghai resident, who called the Sound of Hope Radio, said, “The news reported that the price of cooking oil will increase by 10 percent, but there will be no increase in our wages.”
He compared the current situation to the previous occurrence with gasoline prices. When the price of oil was US$150 per barrel, he could buy gas for US$3.30 per gallon. When the price of a barrel dropped to US$75, he had to pay US$3.60 per gallon.
Another Shanghai resident said that the price of rice has doubled, and a Beijing resident said that prices for green beans, cucumbers, and tomatoes have quadrupled.
“Every vegetable is expensive. My salary is only enough to buy food. One month’s salary isn’t sufficient to afford a shirt, or pair of shoes,” the Beijing resident said.
Though the communist authorities have dismantled many sectors of the planned economy, many prices are still subject to the regime’s control, especially those of energy and resources.
Read the original Chinese article
.
