CHINA'S JAN CPI RISE SEEN TO HOLD STEADY AT 6.5% DESPITE SNOW.

BEIJING, Feb 1 Asia Pulse - Despite heavy snow in most parts of southern China, the country's consumer price index (CPI) may grow 6.5 per cent year-on-year in January, roughly the same as the December, Chen Xiwen, head of the Office of the Central Leading Group on Rural Work, said on Thursday at a State Council press conference.

"The storms have had a severe impact on agricultural production, mostly in the south. The impact on fresh vegetables was catastrophic in certain areas," he told reporters.

"But considering most of the winter grain crops are grown in the north, the supply of grain, pork and edible oil nationwide largely remains intact," said Chen, who added oil crops in the middle and lower reaches of the Yangtze River were "seriously" affected.

By Tuesday, a total of 105 million mu (7 million hectares) of farmland, mainly located in the mid and downstream of the Yangtze River, had been hit by the snow, in which 11.3 million mu lost all their output, according to statistics released by the Ministry of Agriculture on Thursday. Vegetable, orange and wheat crops have suffered severely from the snow.

The already tight supply has been further stretched by disrupted transportation, which was also caused by continuous snow and sleet over much of China. Premier Wen Jiabao has vowed to ensure the transportation of daily necessities.

The public has started to feel the pressure as vegetable prices have escalated across the country. In Changsha, Wuhan and other hard-hit cities in the southern, central and eastern regions, vegetable prices have more than doubled. Even in areas not affected by snow, such as Beijing and the southern Guangdong province, prices have also risen sharply.

"Cucumbers were five yuan per kilo 10 days ago, now you have to pay 8.2 yuan. Broccoli almost tripled from 2.8 yuan to 8.2 yuan per kilo." said Huang Tianlu, a 45-year-old wholesaler at Xinfadi market, the largest produce market in Beijing.