The central bank raised interest rates yesterday to combat rising inflation, which has mainly been caused by rising food prices. Various economists have said it’s nothing to worry about, because it’s supply-side inflation and there’s nothing a central bank can do about it.
But there is one other factor driving this pork price rise that is worrying, and that’s the mysterious blue-ear disease that’s killed tens of thousands of hogs since last year. A few days ago, China’s top veterinary official came out to pooh-pooh rumors that millions of hogs had already died of the disease. Businessweek did a story recently about that, and so did the New York Times.