Daily News-20190612

 |  China Daily/ Xinhua

Today's point:

1.Macro:

China's CPI up 2.7 percent in May

2.Industries:

Snacks continue to be on the upswing in Chinese market

3.Trade:

China's service trade up 4.1 pct in first four months

4.Companies:

Direct flight links Central China, Africa

 

 

Quick view

1.China's CPI up 2.7 percent in May

China's consumer price index, a primary barometer of inflation, in May rose for the third consecutive month to 2.7 percent year-on-year, the National Bureau of Statistics (NBS) said on Wednesday.

The figure is a 15-month high, an increase on April's 2.5 percent, and comes after tighter supplies of fruit, pork and vegetables drove up food prices, the NBS said.

Fresh fruit prices rose by 26.7 percent year-on-year and 10.1 percent month-on-month in May, as bad weather hammered supplies, according to the NBS.

The recent surge in fruit prices should be temporary, as the nation's supply and demand for fruit are generally balanced, according to a Ministry of Commerce statement published June 5.

"CPI is expected to be on an upward trajectory over the whole year. It may peak at around 2.9 percent in September and October, and fall seasonally in November and December," Yang Xiao, a researcher from Kunming, Yunnan province-based Pacific Securities wrote on Tuesday.

The country has set this year's target CPI growth at around three percent, while the average CPI growth during the January-May period was 2.2 percent year-on-year.

The producer price index, which measures factory-gate prices, was up 0.6 percent year-on-year last month, down from 0.9 percent in April, NBS data showed.

On a month-on-month basis, consumer prices remained unchanged from a month earlier in May, while producer prices edged up by 0.2 percent, the bureau said.

(source: China Daily)

 

2.Snacks continue to be on the upswing in Chinese market

Customers check out various snack products at a supermarket in Yantai, Shandong province. (Photo/China Daily)

The snack industry is entering the fast growth lane in China, with the combination of consumption upgrades and new distribution channels set to create an industry with an estimated output value of 3 trillion yuan ($433 billion) in 2020, a new industry report said.

According to the Snack Report released by the Circulation Industry Promotion Center, an affiliate of the Ministry of Commerce, the snack industry has already reached an output value in excess of 2.2 trillion yuan in China.

The report shows that the snack industry grew from 424 billion yuan in 2006 to 2.2 trillion yuan in 2016, a growth rate of 422 percent.

The report shows that consumers love buying healthy and tasty snacks. Natural food, whole grain, sugar-free and additive-free have become key words when selecting snack foods. The major consumer group for snack foods is young people aged between 20 and 30.

The report also found that most snacks were produced in East and Central China, with most of the brands originating from Guangdong and Fujian provinces as well as Shanghai municipality.

For example, top snack producer Bestore, based in Wuhan, central China, has about 2,100 stores covering 13 provinces and 95 cities. Bestore owns 12 categories covering over 90 product lines and 1,200 products, including nuts, seafood snacks, meat snacks, roasted seeds, red jujube fruit, preserved plums and fruit and instant vegetable snacks.

According to Mintel Group, a market research company, China is also the largest consumer of salty snacks. Mintel estimated that the country consumed about 5.5 million tons of snacks, followed by 3.7 million tons in the United States and 1.3 million tons in India and 582,000 tons in Japan, and 557,000 in Mexico.

Mintel also found that China leads the innovations in the salty snack sector and had 11 percent of the total new salty snacks in the world in 2018. The US was ranked second at 8 percent, followed by India at 7 percent and Indonesia and Japan at 5 percent.

E-commerce has enhanced the snack penetration in the country, with snacks taking up 30 percent of online food sales, according to the Snack Report by the Ministry of Commerce.

Three Squirrels, a seven-year-old snack producer founded in Wuhu city of Anhui province, has built its nut empire quickly by selling online. It was ranked the top food seller on Alibaba's Tmall for seven consecutive years and has since expanded offline to more than 100 retail stores and teamed up with about 380,000 offline convenience stores.

(source: China Daily)

 

3.China's service trade up 4.1 pct in first four months

China's service trade climbed 4.1 percent year on year to 1.74 trillion yuan (about 252.84 billion U.S. dollars) in the first four months of the year, data showed Wednesday.

In breakdown, service exports rose 10.1 percent during the period, while that of imports gained 1.1 percent, leading to a deficit of 506.06 billion yuan in service trade, down 9.7 percent from one year earlier, according to data from the Ministry of Commerce.

(source: Xinhua)

 

4.Direct flight links Central China, Africa

A passenger plane from China Southern Airlines is pictured in Beijing on July 15, 2015. (Photo/IC)

An air route was launched Wednesday to link Changsha, capital city of Central China's Hunan province, with Nairobi, capital of Kenya, the operator said.

Operated by China Southern Airlines with an Airbus 330, the outbound flight departed Changsha Huanghua International Airport at around 1 am in Changsha.

With more than 200 passengers onboard, the flight is scheduled to take 11.5 hours to arrive in Nairobi.

The flight is to be operated every Wednesday and Sunday, said Yang Bin, general manager of the airlines' Hunan branch. The return flight will take off at 12:50 pm and land in Changsha at 6:15 am the next day.

The first China-Africa Economic and Trade Expo will be held in Changsha between June 27 and 29. The opening of the new air route will not only provide new travel options for passengers but also facilitate mutual exchanges and cooperation.

(source: China Daily)

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