Recently, China’s consumer inflation increased to the highest in 15 Months in May, as the food prices peaked owing to persistently high pork costs, the NBS (National Bureau of Statistics) data showed. The CPI (consumer price index) in May increased by 2.7% from a year ago, which is the largest since February 2018 and in line with anticipations of economists’ survey by Reuters. The food prices climbed by 7.7% in May from a previous year, whereas non-food prices increased by 1.7% on-year. The fresh fruit prices soared by 26.7% in May from the previous year owing to weather-related factors. They were higher by 14.8% from April.
In China, the pork prices have been determinedly higher in this year as African swine fever affected hog herds across the country. The pork prices increased by 18.2% in May from a previous year, the statistics bureau reported. Bo Zhuang—Chief China Economist at TS Lombard—said, the Chinese diners, who sum up for half of the global pork consumption, might get troubled regarding the higher prices, the growth is not a something that will cause wider market fright. “Chinese pork costs have been up and down for the last decade,” Zhuang said to CNBC. Previously, in this year China’s government said that Chinese pork prices are anticipated to increase over 70% from a year ago.
On a similar note, recently, the Chinese markets slipped as the consumer prices increased to a 15-Month high. Shares in the Asia Pacific dropped after an overnight trading session on Wall Street that reported the end of the Dow’s (Dow Jones Industrial Average) winning streak. Chinese shares crashed, with the Shenzhen Component declining by 0.92% to end at 8,954.72 and the Shanghai Composite decreasing by 0.56% to close at 2,909.38. The Shenzhen Composite collapsed by 0.639% to close at 1,528.40.