The cost of half a kilogram of apples jumped to 15.19 yuan at the beginning of June from 11.81 yuan at the end of April. Between April and early June, sales of apples on the delivery site fell 5.7% from the same period a year ago, according to data from grocery delivery platform Dada-JD Daojia.
The jump in fruit prices has caught the national government’s attention, prompting statements from the Ministry of Commerce and Premier Li Keqiang to assure consumers that the increases are temporary.
That’s just one example in several jumps in food prices in the country. The rapid increase is worth watching for any impact on consumer sentiment and spending, especially since Beijing is putting great emphasis on consumption as a way to keep the economy steadily growing.
Government figures released Wednesday showed China’s consumer price index rose in May to 2.7%, its highest in more than a year, boosted by an 18.2% climb in pork prices and a 26.7% increase in fruit prices.
China is the largest producer of apples, followed by the U.S., according to the U.S. Apple Association. In April and May, frost, heavy rain and hail significantly damaged apple crops in major producing provinces, the U.S. Department of Agriculture’s Foreign Agricultural Service said in its June report.
Cnbc.com claims that as a result, China’s production of apples is expected to drop 25% to 31 million tons, its lowest in 9 years, the report said. That will contribute to an 8-year low in worldwide apple production, according to the report.
[ 100 yuan = €12.79 ]