Rising Pork Prices to Impact Inflation
    2011-06-29 10:08:54     Shanghai Daily      Web Editor: Chudaye
Pork prices in China rose 4.5 percent last week from the previous one, the Ministry of Commerce said on its website Tuesday.
Audio

Pork prices in China rose 4.5 percent last week from the previous one, the Ministry of Commerce said on its website Tuesday.

Average wholesale vegetable prices jumped 2.3 percent in the week ended Sunday and egg prices fell 0.1 percent, according to the ministry.

Economists said rising pork prices will make it much more difficult to control inflation.

Economists expect June inflation to be more than 6 percent.

"Pork prices have gained about 60 percent year on year," said Oliver Chiu, head of research and investment advisory of retail banking at Citibank China. "It's almost certain June inflation will break 6 percent."

Lu Zhengwei, an Industrial Bank senior economist, said he expects June inflation to rise 6.2 percent.

The Consumer Price Index, the main gauge of inflation, for June will be released on July 11. Inflation reached a 34-month high of 5.5 percent in May.

The central government is still prioritizing inflation on its work agenda this year, with tightened credit controls being used to drive out credit-driven inflation.

Economists said inflation could peak in June or July and then wane in the third and fourth quarter.

They said they expect tight monetary measures will eventually tame inflation.

Chiu expected up to two more interest rate increases this year to push the one-year benchmark deposit rate to 3.75 percent, up from 3.25 percent now.

China has raised interest rates four times since October. The People's Bank of China has raised the reserve requirement ratio six times so far this year to siphon liquidity.

Share

               


CRIENGLISH.com claims the copyright of all material and information produced originally by our staff. No person, organization and/or company shall reproduce, disseminate or broadcast the content in any manner whatsoever without the express written permission of CRIENGLISH.com.

CRIENGLISH.com holds neither liability nor responsibility for materials attributed to any other source. Such information is provided as reportage and dissemination of information but does not necessarily reflect the opinion of or endorsement by CRI.

 
Audio Reports more »
Biz Life more »
Policy more »
Markets more »

News
China
World
Politics
Business
Sports
Showbiz
Sci-tech
Photo
Recommended
China
World
Sports
Showbiz
Travel
Video
C4
The Sound Stage
Showbiz
Travel
China Revealed
My Chinese Life
Travel
Destinations
Photo Gallery
Recommended
Learn Chinese
"In" Chinese
Chatting in Chinese
Pop Culture
Traditional Culture
Living Chinese
Chinese Studio
Chinese Class
Learn English
Special English
Pop Chart
Everyday English
Fabulous Snaps
CRI News
China.org.cn  | Xinhua  | People's Daily Online   |  CNTV.cn  | China Daily  |  Global Times  | China Job  |  China Tibet Online  | Taiwan.cn  | eBeijing  | Beijing Today  | China-Eurasia Expo  | APEC Yiwu Conference  | Chinese Embassy in S.Africa  | Chinese Embassy in Australia  | Chinese Embassy in NZ