(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.
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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