China's pork prices continued to rise this month, but that
factor alone will not significantly push up the consumer price
index (CPI), analysts said.
The price of fresh boneless pork rose 12.3 percent from May 21
to June 20 to 19.56 yuan per kilogram, the National Development and
Reform Commission (NDRC) said in a statement on its website.
The NDRC conducts a monthly survey of prices for 46 major goods
and services in 36 cities. The latest survey found a 0.1 percent
drop in egg prices.
Ministry of Agriculture statistics also pointed to strong pork
price rises.
Monitoring of wholesale pork prices in 40 major markets across
the country showed that the highest price reached 20 yuan per kg
yesterday, with the average at 16.8 yuan per kg, 29 percent higher
than in April.
"It is hard to ease the tight supply in the short term, and so
pork prices continued to rise significantly," the statement
said.
Rising prices for grain used as feed and blue ear disease - also
known as porcine reproductive and respiratory syndrome - which
killed a large number of pigs nationwide last year dampened
enthusiasm for raising pigs, analysts agreed.
"The high prices will continue for some time," said Zhu
Baoliang, chief economist with the State Information Center.
"The situation may start to ease after two or three months," he
added.
The latest round of price increases, which began late last year,
and eight or nine more months would be enough for new supply to
meet market demand, Zhu added.
And as prices continue to rise, many pig producers have regained
confidence in market prospects and increased output, which will
push up supply in the coming months, he said.
A rapid rise in pork and egg prices contributed to a rise in the
CPI in recent months, reaching 3.4 percent in May, a two-year
record high. Experts estimate that grain and food prices comprise
about one-third of the CPI basket, with meat accounting for about 7
percent.
Despite rising pork prices, that alone will not increase the
CPI, said Hu Shaowei, an economist from the State Information
Center.
"Prices of many other products, such as eggs, have dropped by
different margins, which will ease CPI pressure," he said.
(China Daily July 5, 2007)
