Food prices in China are on an upward trend this month, a government report showed Tuesday, indicating the world's No. 2 economy will continue to face inflationary pressure.
In the first 10 days of this month, Chinese consumers saw higher prices in 17 out of 29 major food items, compared to the last ten days of April, China's National Bureau of Statistics said.
Prices for Chinese cabbages rose at the highest rate of 5 percent, followed by carp with 3.4 percent and eggs with 2.5 percent. In comparison, prices for green peas fell 10.3 percent. Bananas and cucumbers also shed 4.3 percent and 4.2 percent, respectively.
Analysts said the price growth was largely attributable to a drought that affected a large area of northern China earlier this year, which resulted in a reduced output of crops.
Wang Tao, chief China economist for UBS, predicted the rising food costs will likely push up overall consumer prices in May and June. He expected the CPI will peak in June with a 5.6 percent jump.
China's consumer prices rose 5.3 percent in April from a year earlier, growing more than 5 percent for the second straight month.
The Chinese government is expected to continue to maintain its tightening measures, putting its top policy priority on reining in runaway inflation.
The People's Bank of China, the central bank, last week raised the deposit reserve requirement ratio for its major banks for the fifth time this year, following last month's interest rate hike.