Ministry of Commerce: China's main food prices fell for the second consecutive week
Data released by China's Ministry of Commerce on Tuesday showed that food prices continued to fall in the week ending Sunday. The recently announced broader economic indicators also show that inflation has peaked. However, analysts warned that the price drop may be temporary.
Food prices account for about one-third of China's consumer price index (CPI). As the Chinese government strives to balance prices and maintain economic growth, food price volatility has attracted much attention.
According to the Ministry of Commerce, the average wholesale price of 18 kinds of vegetables decreased by 2.5% from the previous week.
This is the second consecutive week that vegetable prices have fallen. Vegetable prices have been rising since August 15th.
Pork prices fell 1.8%, but other meat prices rose 0.2%-1.3%.
However, analysts said that price declines may only be temporary.
Pan Chenjun, an analyst at Rabobank, said that the bank believes that the pork supply problem in China has not been resolved. The number of live pigs may have increased, but the outbreak is more serious, so pork prices may remain high in the coming months.
He also said that pork prices rose by 45% in October from a year earlier.
According to the Ministry of Commerce, the price of edible oil rose by 0.2%-0.3% as of Sunday, and rice prices rose 0.2%. Flour prices remained flat.
Although the supply of pork has not yet been resolved, the overall price pressure may have eased.
Wang Tao, an economist at UBS, stated that the price increase driven by food prices is characterized by the supply side responding to price increases when supply tensions occur, increasing supply and stabilizing prices, usually Will fall again. The bank believes that this is the biggest reason why China’s CPI will fall back in the coming months.
UBS said that the credit tightening measures taken by the Chinese government will help curb rising non-food-driven prices, while lower energy and commodity prices will further ease cost pressures.
Since the beginning of September, the spot price of corn in the main producing areas of northeastern China has dropped by 17% to RMB 2,160 per ton.
Affected by the slowdown in the global economic slowdown, domestic soybean futures prices have fallen by 8.9% since the beginning of September, and corn futures prices have fallen by 5.7%. Soybeans and corn are the main feed ingredients.
China’s CPI rose by 6.1% in September from a year earlier, slowing from the 6.2% rise in August.
Food prices account for about one-third of China's consumer price index (CPI). As the Chinese government strives to balance prices and maintain economic growth, food price volatility has attracted much attention.
According to the Ministry of Commerce, the average wholesale price of 18 kinds of vegetables decreased by 2.5% from the previous week.
This is the second consecutive week that vegetable prices have fallen. Vegetable prices have been rising since August 15th.
Pork prices fell 1.8%, but other meat prices rose 0.2%-1.3%.
However, analysts said that price declines may only be temporary.
Pan Chenjun, an analyst at Rabobank, said that the bank believes that the pork supply problem in China has not been resolved. The number of live pigs may have increased, but the outbreak is more serious, so pork prices may remain high in the coming months.
He also said that pork prices rose by 45% in October from a year earlier.
According to the Ministry of Commerce, the price of edible oil rose by 0.2%-0.3% as of Sunday, and rice prices rose 0.2%. Flour prices remained flat.
Although the supply of pork has not yet been resolved, the overall price pressure may have eased.
Wang Tao, an economist at UBS, stated that the price increase driven by food prices is characterized by the supply side responding to price increases when supply tensions occur, increasing supply and stabilizing prices, usually Will fall again. The bank believes that this is the biggest reason why China’s CPI will fall back in the coming months.
UBS said that the credit tightening measures taken by the Chinese government will help curb rising non-food-driven prices, while lower energy and commodity prices will further ease cost pressures.
Since the beginning of September, the spot price of corn in the main producing areas of northeastern China has dropped by 17% to RMB 2,160 per ton.
Affected by the slowdown in the global economic slowdown, domestic soybean futures prices have fallen by 8.9% since the beginning of September, and corn futures prices have fallen by 5.7%. Soybeans and corn are the main feed ingredients.
China’s CPI rose by 6.1% in September from a year earlier, slowing from the 6.2% rise in August.
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