Shoppers world over will have to pay more to buy toys as presents, this Christmas as China increases wages. Hundreds of toy makers at the China Import and Export Fair, have been charging more, as the Chinese economy is battling inflation that soared to its three year high of 5.4 percent, this year.
Mattel Inc, maker of Barbie dolls and Hasbro Inc, the owner of the Transformers brand- had raised prices this year as the Chinese factories passed in the higher costs for raw materials and labor.
?If you take into account everything Chinese toy makers are dealing with labor, material, exchange rate, and a price hike is only a natural consequence,? said Hua Zhongwei, a macroeconomic analyst with Huachuang Securities in Beijing.
According to the China Toy Association, there are 8,000 toy companies in the country. China exports $2.6 billion worth of toys this year and more than 17 percent in the year 2010.