GUANGZHOU: Consumer prices in the southern mainland province of Guangdong will continue to rise in the second half of this year, a new survey by the provincial situation study and research center there indicates.

Citing last year's consumer price index, which was up 3.7 percent over 2006, Ding Li, a researcher with the center, said that the southern province will still face "big pressure" from inflation in the short term.

"There are many factors behind the rising consumer prices," Ding told China Daily yesterday, adding that the rising cost of raw materials for food and industrial production has been a major contributor.

And food costs, driven by soaring pork prices, are expected to stay high, Ding said. The price of pork hit a record high of 30 yuan per kilogram on July 11, according to the Guangdong provincial price-control center.

In the first half of this year, food prices in the province increased 5.9 percent over the same period last year, according to the survey.

Additionally, the rising price of crude oil, agricultural products and metals in the international market will push up domestic prices of industrial products, Ding said.

"Also, the rising labor costs, which followed implementation of the new Labor Contract Law earlier this year, will also help lead to rising consumer prices," Ding said.

(HK Edition 07/25/2008 page2)