August 8, 2011

The food price index of China increased 14% in June against the same period last year, showing little sign of slowing down from the 12% surge registered in May.

Leading the price rise in June among major food items was "meat, poultry and their products", on average, increasing 32% on 12 months ago.

The retail price index of eggs, aquatic products and grain also jumped 22%, 14% and 12%, respectively, over the same period (National Bureau of Statistics of China).

In June, average national retail pork prices soared 67% compared with the same time last year, to hit the highest level on record at RMB26.87/kg (US$4.17/kg). According to China's Ministry of Agriculture (MOA), this followed a 119% surge in average live pig prices, to RMB19.57/kg (US$3.04/kg). Rising input costs, relatively low inventories and strong consumer demand over the past year have boosted pig prices in China.

Also reflecting the current high input costs, tight supply and increased demand for animal protein, China's average retail beef in June jumped 10% on-year to RMB36.59/kg (US$5.68/kg). During June, MOA reported a 14% rise in cattle prices, averaging RMB16/kg lwt (US$2.48/kg lwt).