Pork price increase a ‘normal correction’
Print Edition
THE Chinese government has played down the recent spike in the price of pork, amid concerns it could have implications for its monetary policy.
The number of boars and sows is still at a “relatively high level” and there will not be any obvious shortage of supply, Ministry of Commerce spokesman Shen Danyang said yesterday, describing the price uptick as a normal market correction.
The price of China’s favorite meat rose more than 20 percent between March 20 and July 17, according to the ministry’s figures, triggering speculation that the trend would push up inflation and force the government to counter with policy measures.
Food prices account for about a third of the country’s Consumer Price Index, the main gauge of inflation. Pork alone accounts for 2.9 percent of the CPI.
“The recent pork price increase is, on the whole, a correction of the sharp decline seen over the past two years,” Shen told a press conference.
Before the recent increase, pork prices had continuously declined over the past two years, hitting the profits of pig farmers who, in order to mitigate losses, cut down on raising.
Analysts said this was an example of a typical “pork price cycle.”
The commerce ministry will keep tabs on the market and work to stabilize pork supply during upcoming public holidays and festivals.
China’s general inflation has been moderate this year, with the CPI rising just 1.3 percent in the first half.
The central bank said yesterday that it will maintain a “prudent” monetary policy.
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