Rising prices in China trigger panic buying

[Hannah Bell]

Reports in the Chinese media this week that the price of four companies’ soap, detergent, shampoo and body lotion products would increase by up to 15 percent next month led to a rush on these goods in supermarkets in Shanghai, Nanjing and other cities.

According to the official Xinhua news agency, the four companies increasing their prices—multinational firms Unilever PLC and Procter & Gamble, and the Chinese-based Liby Group Co. and Nice Group—control fourth-fifths of the Chinese market. The companies have blamed higher prices for oil and other raw materials.

The Wall Street Journal reported that the run on soap and shampoo in supermarkets represented the “latest signal of public alarm over rising inflation despite government attempts to bring it under control.” An office worker Wang Jingyan told the newspaper that he reacted to the reports of price increases because “shampoo is already way too expensive, and I can’t bear any further price increases.” Web site editor Ramona Yan bought five bags of laundry detergent, explaining that she wanted to buy in bulk for the coming months. “Everything I buy must be on sale or else I just can’t afford to buy,” she said.

China’s consumer price index (CPI) rose by 4.9 percent in February compared to the same month last year. Although it was unchanged from January’s 4.9 percent, the February index was higher than the government’s 4 percent target. Moreover, food prices, which account for much of the household expenditure of workers, increased 11 percent in the year to February.

http://www.wsws.org/articles/2011/mar2011/chin-m31.shtml

[leftstreet]

1. Makes you wonder how it's going for the millions still in poverty

"...and points to the possibility of social tensions erupting, as in Tunisia, Egypt and other Middle Eastern countries."

No shit

K&R

[DJ13]

3. Here in the US as well

[Initech]

4. We really need to get rid of this market speculation bullshit. It's ruining everything!

[Rage for Order]

2. You send 1.2 billion Chinese into a panic and you're going to have an issue n/t