September 1, 2011

Pork prices, a key contributor to China's inflation in recent months, continued to rise in the week to Sunday (Aug 28), up 0.3% for a third consecutive week of increases.

Preparations for the Mid-Autumn Festival in September and the National Day holidays in October are driving prices higher, though the government has warned that pork market may fall into oversupply once consumption thins after the Lunar New Year in January.

The country's hog population in July reached 461.4 million head, up 4% compared with February, the state-backed China National Grain and Oils Information Centre said.

Weekly food prices continued to rise, with vegetable prices increasing most sharply by 6.1% on-week, the Ministry of Commerce said Tuesday.

Egg prices rose 1% in the period, while edible oil prices rose 0.5%-0.6%, it said.