July 12, 2011

Rise of China pork prices slowing

Pork prices in China rose 2.3% in the week ended July 10, easing from a 3.4% rise in the previous week ending July 3, according to data published by the Ministry of Commerce on Tuesday (Jul 12).

The price of pork, a staple food product, is particularly sensitive in China as it has a significant impact on the public's inflation expectations. Pork prices surged 57.1% in June from a year earlier, contributing 1.4 percentage points to annual inflation of 6.4% last month.

Premier Wen Jiabao has pledged to take action to help boost the supply of live hogs in hopes of containing further rises in pork prices.

Jiang Zewei, a vice commerce minister, told reporters on Tuesday (Jul 12) that there will be enough supply of pork in the Chinese market, in a move to sooth public concerns about pork prices.