According to official statistics issued on Wednesday, the Consumer price index in China reached a two-year high in July as hog prices increased once more. Pork prices, a Chinese staple item, increased 20.2% in July compared to the same month last year. According to government statistics accessible through Wind Information, it was the first rise since September 2020.
The report revealed that hog prices had their greatest month-over-month increase on record, rising by 25.6%. According to a statement released by Bian Shuyang, an agricultural products analyst at Nanhua Futures, farmers’ hesitation to sell in the hopes of receiving greater prices in the future was a factor in the spike in hog prices in July.
Even though food prices increased, Wednesday’s inflation figures showed that China’s economy was still experiencing weak demand. According to economists surveyed by Reuters, the headline Consumer price index increased by 2.7% in July, falling short of forecasts for a 2.9% gain. According to Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, “Non-food prices actually decreased in July [by 0.1%] from their June level, which suggests poor demand.” The lack of additional policy support and the Covid outbreaks in several locations, he claimed, “may have contributed to poorer growth in July.”