China's September CPI Rises 1.7%... Slows Due to Stable Pork Prices (Comprehensive)
Producer Prices Negative for 8 Consecutive Months, Seemingly Unable to Escape COVID-19 Impact
[Asia Economy Beijing=Special Correspondent Jo Young-shin] Pork has controlled China's consumer prices. It is analyzed that the recovery of the Chinese pig farming market, where more than 100 million pigs were culled due to African Swine Fever (ASF), has had a positive impact on consumer prices.
China's National Bureau of Statistics announced on the 15th that the Consumer Price Index (CPI) in September rose by only 1.7% compared to the same month last year. This is the lowest in 18 months.
After the outbreak of the novel coronavirus infection (COVID-19), China's consumer prices once soared to the 5% range and have since hovered around the 2% range since May.
In related Chinese industries, there is an analysis that consumer prices have stabilized as pork prices have stabilized.
Since the ASF outbreak, pig farming that was culled has recently returned to normal, causing pork prices to fall.
As pig farming increases, feed companies are also reportedly enjoying a boom.
The CPI increase rate from January to September was 3.3%, which has dropped to around the '3.5%' level, the CPI increase management target set by the Chinese government at the beginning of the year.
Sun Bu, chief analyst at Huaxi Securities in China, said, "Currently, pig farming is in the recovery phase of production capacity, and it is expected to enter the realization phase of production capacity in the fourth quarter," adding, "From now until next year's Seollal, pork supply and demand will increase, and the supply volume will be released, causing pork prices to fall."
The Producer Price Index (PPI) fell by 2.1% compared to the same month last year.
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China's monthly PPI growth rate has been negative for eight consecutive months since February, when the COVID-19 outbreak was at its worst. It has been analyzed that the long-term sluggishness of China's PPI is related to the weakening demand trend inside and outside China after COVID-19.
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