Pork Prices Fall, Forcing Down Inflation Rate10 April 2013
CHINA - China's pork prices, which weigh heavily in inflation calculations, registered a sharp decline in March, putting downward pressure on the country's inflation while leading to widespread industry losses.
Pork prices started declining in January and have slumped 27 per cent from this year's high and fallen 15 per cent compared with the same period last year, according to industry data.
By 1 April, pork prices in 36 cities declined for six straight weeks, the Ministry of Commerce reports.
The drop in pork prices, a major component in the country's inflation calculations, put a dent in inflation rate this month, the National Bureau of Statistics said.
The consumer price index, a main gauge of inflation, accelerated 2.1 per cent in March from a year earlier, dropping from 3.2 per cent in February, the bureau said on Tuesday (9 April).
The figure was below economists' forecast of around 2.5 per cent, and they said this will give the government more leeway to stimulate the economy.
"We are expecting moderate inflation and more flexible monetary policies in the second quarter," said Guan Qingyou, assistant dean of the Minsheng Securities Research Institute.
TheMeatSite News Desk