China pork prices have risen over 20%

China’s consumer price index hit a two-year high in July as pork prices rose, according to official data released Wednesday. Prices of China’s staple pork rose 20.2% year-on-year in July. This was his first ascent since September 2020, according to official data accessible from Wind Information.

Bian Shuyang, an agricultural product analyst at Nanhua Futures, said the rise in pork prices in July was due to farmers’ reluctance to sell and expectations of higher prices in the future. Mr. Bian expects pork prices to struggle above July levels in the future. His two Chinese holidays in September and October will help prop up consumer demand for pork, Bian said.

Analysts say live hog producers are now profitable, indicating another supply is coming. Pig prices have risen sharply over the past three years as pig farmers battle deadly diseases and many new producers.

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Fruit & Vegetable prices also rising sharply

According to the National Bureau of Statistics, the price of fresh fruit and vegetables also rose 16.9% and 12.9% in July compared with the previous year. Food prices rose, but Wednesday’s inflation data continued to reflect weak demand in the Chinese economy. Composite CPI rose 2.7% in July, below his 2.9% rise in expectations, according to analysts surveyed by Reuters.

Growth may have slowed in July due to Covid outbreaks in many cities and lack of further policy stimulus. “Non-food prices fell [0.1%] from June levels, reflecting weak demand,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a report. rice field. “The outbreak of COVID-19 in many cities and the lack of further policy stimulus may have contributed to slower growth in July,” he said.

Tourism seasonal prices rose only 0.5% year-on-year in July, despite the summer holidays. The cases of the Covid epidemic in recent weeks have disrupted the holiday, with flights canceled and venues closed at sights from Hainan Island to the Tibetan Plateau.

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China & US CPI

CPI for China last month was still the highest since July 2020, when the index also saw him rise 2.7%, according to Wind data. China’s inflation data is well below that of the US, and the US is set to release her CPI data overnight.

Economists surveyed by Dow Jones expect the US CPI to rise 8.7% year-on-year in July, compared with his 9.1% in June. Wednesday’s data showed Chinese producer prices remained calm and below expectations. The 4.2% year-on-year increase reported in July was below a Reuters survey forecast of 4.8% growth. “The decline in PPI inflation also suggests that China’s CPI inflation has limited upside,” According to Ting Lu, chief China economist at Nomura.

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Source: CNBC