Rising pork prices heightens inflation concerns

Since early May pork prices in China have kept rising mainly due to the cyclical live-pig supply shortage and higher costs for pig feed caused by rising grain prices.

"My family has to add around 130 yuan (20 U.S. dollars) extra to the monthly budget due to rising food prices, especially pork," said Zhang Liang, a resident in Jinan, capital of east Shangdong Province.

All across the country pork prices have soared in recent months.

Pork is the most widely consumed and affordable meat in China, and its price weighs heavily on the consumer price index (CPI).

Statistics from the China Animal Agriculture Association (CAAA) show that in 2009, pork accounted for 65 percent of the meat consumed by Chinese.

China still faces upward pressure on prices in the near future, said Sheng Laiyun, a spokesperson for the National Bureau of Statistics (NBS), on Tuesday at a press conference.

According to the new figures published by the NBS, China's CPI,the main gauge of inflation, rose 5.5 percent year-on-year in May, 0.2 percentage points higher than in April and hitting a 34-month high.

Sheng said that the rising CPI is due to the rises in food prices, pork and egg prices in particular.
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Source: Xinhua

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