(Bloomberg) -- Shares of Angel Yeast Co. surged by as much as the 10% daily limit in Shanghai after the company raised product prices as inflation in an array of commodities seeps into various sectors of China's economy.
The Yichang-based yeast manufacturer had sent guidance to customers informing them of the need to raise prices due to a jump in raw-materials costs, according to a report on the Tonghuashun Finance site on Wednesday. A company spokesman confirmed to Bloomberg News that a price increase has been implemented, but wouldn't specify the extent or magnitude.
China Warns on Food Security as Coal Crunch Hits Fertilizers
The move comes on the heels of inflation hitting a range of commodities and materials critical to manufacturing, agro industry and farming in the world's second-largest economy.
Dry yeast production uses starch or molasses as raw materials, and also requires ammonium sulfate, urea and other nitrogen-containing chemicals and fertilizers. The cost of urea, for example, has surged because of a coal shortage and energy crisis in China. The price of wheat, another crucial ingredient, has also spiked due to bad weather hurting crop supplies.
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