Bumper harvest may not bring down prices

A bumper summer harvest would not help to ease the growth of the consumer price index (CPI) in China. Domestic grain prices are expected to decline slightly in the short term due to the bumper summer harvest supply, but it is likely to rebound shortly after, said Jiang Xingchun, an analyst of Guoyuan Securities.

China's grain industry can only satisfy its domestic demands, as the country's grain reserves have been stable without any noticeable increases in the past years, Jiang said.

Although an improvement in people's living conditions has caused changes in food consumption patterns, the amount of grain used for feed has been gradually increasing, he said.