Many find Hong Kong prices so attractive that they travel more than 900 miles from inflation-stricken Shanghai to shop for necessities. “Seeing how fast prices have soared,” exclaimed office worker Sun Ningin in a new report widely quoted on the Chinese Internet, “I scheduled a train trip to Hong Kong with my friends.” She said the travel cost, when split among the group, was far lower than the cost differences.
Sun’s shopping list includes infant formula, body wash, athletic shoes, and condiments, all popular choices for price wary mainland shoppers. According to a recent study by Oriental Morning Post and Fudan University, prices for branded personal cleaning products like shampoo can be up to 30 percent higher in Shanghai compared to Hong Kong, where produce such as apples and eggs is also less expensive.
Inflation Rising Rapidly
China’s inflation is officially out of control. The October consumer price index (CPI) rose by 4.4 percent over the same period last year, breaking a 25-month record. Food prices accounted for the majority of the increase, rising 10.1 percent over last year, according to official statistics—but the numbers may not capture the real picture. In a Nov. 9 report, Chinese Academy of Social Sciences researcher Xu Qiyuan said China’s CPI has been systematically underestimated by seven percent in the past five years. Price statistics seem to support his conclusion: November data show that in China’s 36 major cities, the average wholesale price for 18 monitored vegetables rose 62.4 percent compared to a year ago.
Prices of nonfood products are also rising. Cotton futures, for example, rose by 32 percent in the past two months, resulting in rising fabric and apparel prices. Authorities also increased gasoline and diesel prices by 4.5 percent and 5 percent respectively, on Oct. 26.
Tremendous Social Impact
Inflation has impacted Chinese in every way. Price increases and finding the best deals have become daily topics; for many, a more frugal life is inevitable.
Qiqihar resident Liu Hua told Southern Weekly that his family has excluded from their dinner table stewed pork and vermicelli, a family favorite for decades, since both are too expensive. This winter, her family stocked up more on Chinese cabbages and potatoes to replace more expensive vegetables such as green beans and cucumbers.
They also gave up plans for a new washing machine, using the money for food. “A new washing machine can wait until we have more money to spare,” said Liu’s husband. “But rice, flour and cooking oil are all growing more and more expensive. We can’t live without them.”
Even with all the penny-pinching, the grocery expenses are 30 percent higher than in the summer, Liu Hua said.
Pressured by rising prices, consumers are sharpening their shopping methods. Online shopping, group shopping, deal hunting, and stocking up are now all popular Internet search terms. “Groupon” type deal of the day websites have gained wide popularity since their first introduction to China less than a year ago.
Zhang Yi, a 23-year-old ad agency employee, is a big group shopping fan. He told Xiaoxiang Morning Post that he relied on group shopping websites for haircuts, dinners, movie tickets, and even travelling.
But creative shopping does not solve the real problem. For the lower income groups, high inflation is devastating. Retired Shanghai resident Ms. Shen told The Epoch Times that living expenses are now so high that she can no longer afford healthcare. “As retired people, we don’t even dare to see a doctor unless the situation gets very serious,” she said. “We just can’t afford the treatments.”
Anger accompanies desperation. On Nov. 22, more than 1,000 high school students in Guizhou Province wrecked the school cafeteria in protest of its recent price hike. People fear such violent protests will happen more frequently due to greater financial burdens.
Views expressed in this article are the opinions of the author and do not necessarily reflect the views of The Epoch Times.
