Food prices surge in China.

Grim news from China:-

a) Inflation rate is at 4.9% (Jan '11) compared to 4.6% (Dec'10)

b) Jan'11 : Surges include

Eggs up by 20%

Fresh fruits by 33%

Sugar up by 80%

High grade rice more by 65%

c) What this means is that millions of the poorer Chinese households which spends half their income on food will experience severe economic setbacks - 50% spending of income on income might translate up to 70%.

d) Remember also that crude oil is now at USD$100 and standing by. The Chinese folks still needs to pay for transport somehow.

e) Food prices hikes were recognised as one of the catalyst in bringing down the governments of Tunisia and Egypt.