Rising Pork Prices Trigger Inflation Fears in China
Pork prices in China have been on the rise since June 13, leading to price increases for other major agricultural products. Furthermore, another round of inflation may be coming, according to the National Development and Reform Commission (NDRC).
The NDRC announced on its Web site on Aug. 27, “The rise of prices for some commodities increases the possibility of inflation,” and called for stronger local price controls on necessities.
According to statistical analysis of price variations for staple foods in 50 major cities released by the National Bureau of Statistics of China in mid-August, prices for pork and poultry changed most, increasing more than 20 percent.
Inflation is different from region to region. In Northern China, the prices have been rising slowly and steadily, but in the Southwest and the Northwest, the pork prices are increasing rapidly.
According to China Economic Weekly, “Price increases for animal feed, such as corn, soybean waste, and other ingredients has fueled the rise in pork prices.”
In addition to rising pork prices, other meats and agricultural products have been rising rapidly since August. The price of eggs has risen 14.8 percent from July to August. The average prices of eggs in the main production areas such Liaoning, Hebei, Shandong, and Henan Provinces have gone up more than 10 percent in a single month, and the highest localized increase was 20.9 percent. The price of eggs is still going up.
Continuously rising pork and poultry prices have led to rising costs for other meat products, such as beef and mutton. Rising meat prices have in turn led to increasing animal feed and grain prices. The price of corn continues to rise. It has gone up for 25 weeks, for a 17 percent price increase.
According to the NDRC’s statistics, of the 15 main agricultural products, 11 of them have gone up in 50 major cities.
In 2007, rising pork prices led to inflation. China again faces the fears that the current round of price increases will lead to further inflation.
Read the original Chinese article .