September 10, 2020

China's inflation slows in August, pork prices lowest increase in a year

China's National Bureau of Statistics data showed China's inflation moderated last month, with pork prices at its lowest increase in a year, AFP reported.

Pork prices in China increased 52.6% on-year in August, lower than the 85.7% increase in July and 100% increase earlier this year.

China's consumer price index is 2.4%, following expectations and below July's reading.

Dong Lijuan, from the National Bureau of Statistics, said supplies of pork in China have gone up but other meat costs have increased due to high feed costs, improving demand and surging pork prices.

Pork prices in China have surged to record levels after the country's swine herds were destroyed following African swine fever outbreaks.

Lu Ting, from Nomura, said China's lower CPI inflation was caused by a sharp drop in pork prices on-year because of a high base and rising pork weight in the CPI basket.

Earlier this week, China's General Administration of Customs data showed meat imports into the country has gone up 70% in 2020.

-      AFP