China’s rising pork prices trigger inflation concerns as state reserves fail to cool costs
- China has released pork from its state reserves this month, with prices having surged by more than 50 per cent compared to a year earlier
- Low prices for pork are thought to have helped subdue inflation pressure, but rising prices since April have put Chinese authorities on alert
China’s release of pork from its state reserves has yet to cool down the rising price of the staple meat from a 17-month high, dampening consumer demand and triggering fresh inflation concerns.
Pork prices in China have surged by more than 50 per cent compared to a year earlier, standing at 31 yuan (US$4.4) per kilogram on average in 22 provinces and cities as of Friday, representing the highest level since May 2021, according to financial data services provider Wind.
In the past four or five months, the price of pork has gone up very quickly, and I’m spending much less on pork now
“In the past four or five months, the price of pork has gone up very quickly, and I’m spending much less on pork now,” said Zhu Yuyun, a 62-year-old retired worker in Guangzhou.
“I used to buy five ribs at a time for about 70 yuan, now I buy two ribs and the price is nearly 60 yuan.”
China’s state planner will release a third batch of 14,400 tonnes of frozen pork from its state reserves on Friday, pushing the total monthly releases of national and regional pork reserves close to a historic record of 200,000 tonnes.