China: Inflation climbs to nearly eight-year high in October on surging pork prices
November 9, 2019
Consumer prices rose 0.9% in October, matching September’s result. The print mostly reflected higher prices for food, particularly owing to a continued surge in pork prices following the outbreak of African swine fever in August 2018 which has reduced the country’s pork herd by approximately 40% according to official figures. Pork prices have jumped around 100% in the last 12 months.
Inflation shot up from 3.0% in September to 3.8% in October. The print was above market analysts’ expectations of 3.3% and the highest rate since January 2012. Annual average inflation rose from 2.4% in September to 2.5% in October.
Annual producer prices (PPI), meanwhile, fell 1.6% year-on-year. The print exceeded both September’s 1.2% decline and the 1.5% drop that market analysts had expected.