China's pork prices echo consumer price rises, government target missed last year

The consumer price index (CPI) for December 2020, released by China's National Bureau of Statistics on 11 December, rose by 0.2% year-on-year, turning upwards after recording a negative figure in November for the first time in 11 years and one month. The rise was due to a recent rise in the price of pork and other products that are essential to the Chinese diet.

The breakdown shows that food prices, which fell 2.0% in November, turned up 1.2%. Compared to the previous month, pork prices rose by 6.5% and fresh vegetables by 8.5%. This was due to a slow recovery in the supply of pork, for which demand is increasing ahead of the Chinese New Year, and to the strong cold weather, which has increased the production and transport costs of fresh vegetables and fruit.

For the full year of 2008, the CPI rose by 2.5% year-on-year. The annual CPI growth target set by the Chinese government for 2008 was around 3.5%, which was not achieved. Despite the economic recovery, prices are unlikely to rise, and concerns about deflation have been raised.

Meanwhile, the wholesale price index for industrial goods (PPI) for December 2008, released simultaneously by the Statistics Bureau, fell by 0.4% year-on-year. Although the rate of decline narrowed from November (1.5%), it was the 11th consecutive month of decline.