Rising pork prices in China are fueling fears of inflation as government reserves fail to cut costs. China released pork from government stockpiles this month, pushing prices up more than 50% year-on-year. China plans to release a further 14,400 tonnes of pork from its stockpiles.
Even as China releases pork from state stockpiles, staple meat price gains have yet to cool off from her 17-month high, weakening consumer demand and raising new inflation concerns.
China’s pork prices averaged 31 yuan ($4.4) per kilogram in 22 provinces and cities as of Friday, up more than 50% year-on-year and are expected to hit 5% in 2021, according to financial data service provider Wind.
It is the highest price since last month. Relatively low pork prices, which account for the heaviest weight among food items in China’s consumer price index (CPI), are said to have helped dampen inflationary pressures, but price increases since April , the Chinese authorities are on high alert.
The National Development and Reform Commission (NDRC) announced earlier this month that he had two Released batch pork stockpile.
China’s national planner said he released a third batch of 14,400 tonnes of frozen pork from national stockpiles on Friday, bringing the total monthly release of national and regional pork stockpiles to his historic record of 200,000 tonnes.
The cost of released reserves should be lower than market prices in order to ensure a supply of hogs and pork and stabilize prices.
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