November 5, 2024 | 19:39 GMT +7

  • Click to copy
Saturday- 15:53, 10/07/2021

China inflation eases on the back of falling meat prices

(VAN) China's consumer inflation eased in June on the back of falling pork prices, official data showed on Friday (Jul 9), although factory gate costs remained elevated after a recent surge in commodity prices.
China's consumer inflation has been driven up in recent years by pork prices after an African swine fever outbreak ravaged stocks. Photo: AFP

China's consumer inflation has been driven up in recent years by pork prices after an African swine fever outbreak ravaged stocks. Photo: AFP

The world's second largest economy has largely bounced back from the coronavirus hit, and factory gate inflation began to ease last month after surging at the highest rate in more than a decade earlier in the year as commodity prices spiked.

Factories so far appear to be absorbing the costs rather than passing them on to consumers, and analysts expect Beijing to protect shoppers from rising costs.

China's consumer price index (CPI), a key gauge of retail inflation, rose 1.1 per cent on-year in June - lower than analysts expected, and down from the month before.

The low CPI inflation was "to a large extent driven by slumping pork prices", Nomura chief China economist Lu Ting noted.

China's CPI has been driven up in recent years by pork prices after an African swine fever outbreak ravaged stocks.

Pork prices have now dropped 36.5 per cent from last year's spike, according to the National Bureau of Statistics (NBS), helped by a recovery in live pig production and seasonally weak consumer demand.

The government has a target to keep consumer inflation below 3 per cent this year.

The producer price index (PPI), which measures the cost of goods at the factory gate, rose 8.8 per cent on-year - edging down from the 9 per cent surge in May.

"In June, preliminary effects of policies to stabilise the supply and cost of commodities can be seen ... and the rise in prices of industrial products has slowed," said Dong Lijuan, senior statistician at the NBS.

Lu of Nomura said he expected Beijing to ease some of its carbon emission and production safety rules to boost the production of some raw materials, and remain "strategically focused on boosting the manufacturing sector".

Tr.D

(AFP)

Meeting the new demands of the EUDR

Meeting the new demands of the EUDR

(VAN) Sophisticated automation enables users to send hundreds of data collection requests with a single click.

Small farmers in Europe struggle to get by

Small farmers in Europe struggle to get by

(VAN) Brutal economic situation has inflicted misery on farmers who struggle to turn a profit and forced some to look for alternative streams of revenue.

China intensifies emergency food supply amid increasing extreme weather events

China intensifies emergency food supply amid increasing extreme weather events

China has reinforced its emergency food supply in response to increasing extreme weather events and natural disasters, an official said.

Scientists dismayed as UK ministers clear way for gene editing of crops - but not animals

Scientists dismayed as UK ministers clear way for gene editing of crops - but not animals

(VAN) Advocates urge government to allow ‘precision breeding’ to combat disease, but RSPCA warns of ethical dangers.

Expectations positive, but tempered on GM wheat in US

Expectations positive, but tempered on GM wheat in US

(VAN) HB4 wheat’s USDA approval will enable Bioceres to 'move forward with nonregulated field activities for product development and commercialization,' CEO Federico Trucco said in September.

Famine and catastrophic hunger in 5 major hotspots alongside the looming La Niña_climate threat in others

Famine and catastrophic hunger in 5 major hotspots alongside the looming La Niña_climate threat in others

(VAN) Acute food insecurity is set to increase in magnitude and severity in 22 countries and territories.

Pharma and agritech groups push against biodiversity levy at UN summit

Pharma and agritech groups push against biodiversity levy at UN summit

(VAN) One contentious proposal seeks to impose 1% levy on returns from products made using genetic data.

Read more