November 23, 2024 | 08:25 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)

Gaza food production ‘decimated’ with 70% of farmland hit

Gaza food production ‘decimated’ with 70% of farmland hit

(VAN) Israeli attacks have destroyed huge areas of land used for crops, with 90% of cattle killed, analysis shows.

Improving safety at sea at a time of climate change

Improving safety at sea at a time of climate change

(VAN) Interview with Manuel Barange, Director of FAO’s Fisheries and Aquaculture Division.

British farmers warn of bitter harvest

British farmers warn of bitter harvest

(VAN) Finances, politics and a cultural divide push the agriculture sector to the brink and stir up anger.

Small farms key to taking on hunger

Small farms key to taking on hunger

(VAN) Modest operations account for more than 90% of global food producers.

What the farmers' protest tells us about their argument with the government

What the farmers' protest tells us about their argument with the government

(VAN) The farmers' demonstration was best summed up in two images: real tractors being driven by farmers around Parliament Square, and beside them a collection of toy tractors being peddled around by their children.

FAO urges all its Members and partners to join the Global Alliance against Hunger and Poverty

FAO urges all its Members and partners to join the Global Alliance against Hunger and Poverty

(VAN) G20’s initiative is officially launched in Brazil. FAO will host the Global Alliance’s Support Mechanism.

COP29 showcases China’s progress in green transition

COP29 showcases China’s progress in green transition

(VAN) China has provided and mobilized more than 177 billion yuan of project funds since 2016 in support of other developing countries' climate response, the Xinhua News Agency reported.

Read more