July 5, 2011

Pork prices in China kept their bull run in the week ended June 26 with an increase of 4.5% on-week, according to the Ministry of Commerce (MOC) on June 28.

Pork prices soared 40.4% on-year and helped drive up the inflation rate to a 34-month high in May.

Since early May, pork prices in China have continued rising mainly due to the cyclical live-hog supply shortage and higher costs for hog feed caused by rising grain prices.

Pork is the most widely consumed and affordable meat in China, and its price weighs heavily on the consumer price index (CPI).

The MOC data showed that during the week ended June 26, meat prices rose from the previous week with pork up 4.5%, beef up 0.9%, chicken up 0.6% and mutton up 0.4%.

Heavy rains and floods in the south pushed up the average wholesale prices of 18 staple vegetables by 2.3% as a whole, with the wholesale price of cabbage and Chinese cabbage up 20.3% and 17.9% from previous week.

Prices of rice and flour added 0.5% and 0.4% from the previous week, respectively.