Image source, Image caption, Haitian from Foshan makes the best-selling brand of soy sauce in China
The maker of China's best-selling brand of soy sauce is raising prices, the latest sign of inflationary pressures in the world's second-largest economy.
Foshan Haitian Flavoring and Food Co has said it will increase the prices of its product lines by up to 7% later this month.
The Shanghai-listed company pointed to the higher costs of materials, transportation and energy for the decision.
Commodity prices have been soaring as the world comes out pandemic.
Price increases will apply to soy sauce, oyster sauce and other sauce products from October 25, the firm said in a filing on the Shanghai Stock Exchange .
Thecompany said the hike is aimed at making its business more "sustainable " in the face of rising costs.
Beside soy sauce and oysters, Foshan Haitian develops, manufactures and distributes other products including vinegar, chicken broth, MSG and oil.
The company's shares barely changed on Wednesday but jumped more than 28 % over the past month.
In recent weeks, China has seen its energy costs rise, as power cuts hit parts of the country as suppliers struggle to meet growing demand.
Flooding in Shanxi province, which is one of the country's main mining regions, has further complicated efforts to alleviate the energy shortage.
The price of coal used in China's electricity power plants have hit record highs for three consecutive days as power plantsctrics compete for fuel.
Image source, Image caption, Foshan Haitian makes several other products including oyster sauce
Global inflation concerns
In recent weeks, the world's leading financial institutions have raised concerns about the impact of inflation on the global economy.
Last month, the Organization for Economic Co-operation and Development projects that for at least the next two years rs, prices in the group of major G20 economies will rise faster than before the pandemic.
Rising raw material prices and shipping costs are pushing up inflation , the Paris-based policy forum said.
Tuesday, the International Monetary Fund (IMF) said inflation " will remain high for the next few months in countries like the UK and US and central banks should be vigilant.
IMF chief economist Gita Gopinath said that the One of the biggest problems was high inflation, especially in the UK and US where it is 3.2% and 5.3% respectively.
This was in part due to a "mismatch between supply and demand ", but also soaring gas prices in the case of the UK.
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