Noticed a surge in the price of garlic? Here's the reason why.

Latest figures from China's Development and Reform Commission show the wholesale price for the herb surged 90 percent in October, while the retail price soared 68 percent to some 15.79 yuan per kilo ($2.33).

Retail price for garlic in a supermarket in Shanghai surged to 17.80 yuan per kilo, above the average. [Photo: sohu.com]

Some say the price could be the highest on record, and might go even higher in the near future.

Analysts point to a cold snap last year in China, which killed off bulbs and cut supply, causing a price bubble, and spurring some traders in the country this year to hold on to their garlic stocks in the hope of bigger profits in the future.

Why garlic?

Some media reports have even suggested that garlic mania in China was triggered by tighter controls on money flowing into equities and real estate.

Garlic is seen as an attractive target for speculators and those looking to make a quick buck, as it's easy to stockpile and remains fresh for a long time.

In China, the main production base for garlic is in eastern Shandong Province, where cold storage is widely used.

As of 2012, China is the largest producer of garlic in the world.

File photo of Garlic [Photo: Baidu]

Will this cause inflation in China?

Maybe, but only in the short term.

China's key inflation gauge consumer price index grew at its fastest pace in six months in October, fueled by garlic and coal price jumps.

China's National Bureau of Statistics says the October CPI data ended a run of previous drops in the past five-consecutive months starting from 2.3 percent in April, when the CPI hit its highest level since July 2014.

But Shi Dalong, analyst with Suning Finance Research Institute, said it was too early to be predicting inflation.

Shi pointed out there would be some short-term inflationary pressure, but as property and car purchase demands fall due to policy changes, overall price levels should run within a proper range.