The rise in prices for China’s best-selling soy sauce brand, Foshan Haitian, was unexpectedly called a sign of rising inflationary pressures in the world’s second-largest economy, the BBC reported.
From October 25, Foshan Haitian will increase prices for its product range by seven percent. Soy, oyster and other sauces of the brand are expected to rise in price. The company said the price increase should make its business more resilient in the face of rising raw materials, transportation and energy costs.
China is facing an energy crisis that has triggered higher electricity prices. The reason was rapidly growing industrial demand and high commodity prices, as well as the country’s transition to clean energy.
The world food price index rose 27 percent over the year, a record high in 40 years. The head of the American food concern Kraft Heinz, Miguel Patricio, explained that there are several reasons for the rise in prices: supply disruptions and unmet demand. In addition, the rise in energy prices has increased the costs of producers. Patricio is confident that food prices will continue to rise, because the planet’s population is growing, and the area of land where you can grow food is not increasing.