Falling pork prices are expected to lead to a slowdown in China’s consumer inflation later this year as hog production gains momentum after the devastating impact of African swine fever, reported Caixin.
Peng Shaozong, a National Development and Reform Commission (NDRC) official, said a press conference last Thursday that prices for this major driver of consumer price index (CPI) growth had already started to decline.
He said the average price of lean pork meat in 36 large and medium-sized cities fell to RMB 64.4 ($9) per kilogram on Wednesday, down from the highest price in February of RMB 69.3 per kilogram.
China’s CPI, which measures the prices of a basket of consumer goods and services, rose by 5.2% year-on-year in February. The relatively high inflation was driven largely by surging pork prices, which contributed 3.2 percentage points of the CPI increase, according to the National Bureau of Statistics.