September 7, 2009
China's August pork prices rise seven percent
Chinese pork prices continued their hike in August, rising 7.1 percent from the previous month, according to figures from China's National Development and Reform Commission.
The state planning agency said in a notice posted on its website that the ex-factory price of unprocessed pork in China's major cities reached an average of RMB12.03 (US$1.76) per kilogram on August 26.
It said the prices of live hogs rose over the period due to the state campaign aimed at supporting prices, which included the temporary stockpiling of frozen pork.
The agency added that the approaching National Day and Mid-Autumn Festival celebrations were also having an upward impact on consumption. However, the overall supply still surpasses demand and prices are likely to fall again in October.
Pork prices have been rising for three consecutive months but the agency said last week that the increases were a normal recovery from very low levels and would not lead to another round of food-driven inflation in China.
In 2007, a wide-scale culling of disease-stricken pigs sent prices escalating and sparked China's worst period of inflation in more than ten years.
