Prepare for a higher food bill.BEIJING -- Chinese officials said Wednesday they are preparing for a severe, long-lasting drought in several parched provinces, causing wheat prices to spike on the prospect of the world's largest consumer putting pressure on a global supply that's already squeezed.
The U.N.'s food agency has warned that the months long drought is driving up the country's wheat prices, and now the focus is on whether China will buy more from the global market, where prices have already risen about 35% since mid-November.
The rising prices add to growing concerns in China about inflation, which the government sees as a potential source of social unrest. Average flour prices rose more than 8% in January from the previous two months.