Inflation: As costs rise, the price of top China soy sauce has increased

In the latest hint of inflationary pressures in the world’s second largest economy, the maker of China’s best-selling brand of soy sauce is hiking prices.

Foshan Haitian Flavouring and Food Co. has announced that the pricing of its products will rise by up to 7% later this month. Higher material, transportation, and energy costs were cited as reasons for the decision by the Shanghai-listed corporation.

As the world recovers from the pandemic, commodity prices have soared. The firm said in a report to the Shanghai Stock Exchange that price increases will take effect on October 25 for soy sauce, oyster sauce, and other sauce items.

The increase is intended to make the company’s business more “sustainable” in the face of rising prices, according to the corporation.

Apart from soy and oyster sauce, Foshan Haitian also develops, manufactures, and sells vinegar, chicken stock, monosodium glutamate, and oil. The company’s stock scarcely moved on Wednesday, although it has risen by more than 28% in the last month.

China’s energy rates have risen in recent weeks, and certain sections of the country have seen power outages as suppliers battle to keep up with surging demand. In recent weeks, key international financial institutions have expressed alarm over inflation’s influence on the global economy.

Last month, the Organization for Economic Cooperation and Development predicted that prices in the G20 group of major economies would expand faster than they did before the pandemic for at least the next two years.

Inflation is being pushed up by higher commodity prices and shipping expenses, according to the Paris-based policy group.

High inflation, according to IMF senior economist Gita Gopinath, is one of the major issues, notably in the UK and the US, where it is 3.2 percent and 5.3 percent, respectively. This was partly due to a “demand-supply imbalance,” but it was also due to rising gas prices in the UK.