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BIZCHINA> Top Biz News
Pork, eggs price increases won't trigger inflation
(Xinhua)
Updated: 2009-09-21 15:21

China's Minister of Agriculture Sun Zhengcai said Monday that the recent consecutive increases in prices of pork and eggs are "normal", and will not trigger inflation.

Sun made the remarks at a conference on achievements China has made in the sixty years since 1949 when the People's Republic of China was founded.

Food, of which pork is one key component, makes up a third of China's consumer price index. Sun's comments dispelled concerns recent price increases would also lift other agricultural products' prices and result in inflation.

Data from the National Development and Reform Commission (NDRC) Monday  showed the price of pork was 23.94 yuan ($3.51) a kilogram during the week starting September 14, up 0.17 percent from the week starting September 7.

Sun said pork prices had recorded an accumulated 30 percent increase in the recent 15 weeks, adding the rises were because of normal recovery and seasonal adjustment.

China's pork prices fell from March to June on oversupply and concerns the A/H1N1 influenza virus was connected with pigs.

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He gave figures to support his argument, saying the current price of pork was still 11.3 percent lower than this year's price peak, and 16.3 percent than a year ago.

Egg prices stood at 8.29 yuan ($1.21) per kilogram last week, down 0.7 percent from a year earlier.

The rebound in prices was the natural result of their being too low during the March to June period, Sun said, noting the increases helped ease the losses of big breeders.

About 45.76 percent of the country's pig breeders suffered losses in May but the figure reduced to 6.8 percent by August, he said.

"I am sure that supply of major agricultural products will be ample, and there will not be big and straight price increases. So inflation will not happen." Sun said.

He said severe drought in the northeastern and southern parts of China since August have had a big impact on grain production, but the country would enjoy a good harvest during Autumn if there were no major natural disasters.

 


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