|Foshan Haitian makes China's best-selling brand of soy sauce. (Photo by=Getty Images)|
[Asia News = Reporter Reakkana] The maker of China's best-selling brand of soy sauce is raising prices, in the latest sign of inflationary pressures in the world's second-largest economy. Foshan Haitian Flavouring and Food Co said it will increase the prices of its range of products by as much as 7% later this month.
The Shanghai-listed company pointed to higher costs of materials, transport, and energy for the decision. Commodity prices have been surging as the world emerges from the pandemic.
Price increases will apply to soy sauce, oyster sauce, and other sauce products from 25 October, the firm said in a filing to the Shanghai Stock Exchange. The company said the hike is aimed at making its business more "sustainable" in the face of rising costs. Besides soy and oyster sauce, Foshan Haitian develops, makes, and distributes other products including vinegar, chicken stock, monosodium glutamate, and oil. The company's shares were barely changed on Wednesday but have jumped by more than 28% in the last month.
In recent weeks, China has seen energy costs surge, while power cuts have hit some parts of the country as suppliers struggle to keep up with rising demand. Flooding in Shanxi province, which is one of the country's key mining regions, has further complicated efforts to ease the energy shortage.