China's Kweichow Moutai raises liquor prices

SHANGHAI, Jan 14 (Reuters) - Kweichow Moutai Co (600519.SS), one of China's top makers of traditional Chinese liquor, said it has raised producer prices by an average of 20 percent since Friday.

"The price adjustment will have a positive impact on our company's annual earnings," Kweichow Moutai said in a statement at the weekend, which was seen by Reuters on Monday.

China's liquor and wine producers are increasing prices for both high-end liquor and table wine as the country is approaching the annual festive season of Chinese New Year in early February, adding inflation pressure driven by soaring food prices, which have sparked widespread official concerns.

Among the latest, Gu Yue Long Shan Shaoxing Wine (600059.SS), a rice wine producer, said last week that it would raise prices across several categories of rice wines before the Year of the Rat starts on Feb. 7.

The December consumer price data is expected to be announced in the middle of next week and official sources have told Reuters the headline figure is 6.5 percent -- below November's 11-year high of 6.9 percent, but not far down enough to give the market confidence that inflation has peaked.

China said last week it would temporarily intervene in the market to brake rising prices for basic necessities such as food, but wines and liquor are not subject to such controls. (Reporting by Lu Jianxin, editing by Jacqueline Wong)