Pigs don’t fly, but pork prices soar in China

14/10/11 14:37 CET

economy

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Consumer inflation in China dipped last month. It was 6.1 percent compared with September last year. In July it hit a three-year high of 6.5 percent.

However, food price pressures remained strong, rising 13.4 percent from a year earlier, unchanged from the pace in August and that should deter the central bank from cutting interest rates anytime soon.

Non-food inflation eased to 2.9 percent from 3.0 percent in August, the data showed.

The government pays particular attention to prices of pork, the staple meat for many ordinary citizens who are unhappy about inflation. Pork prices were 43.5 percent higher in September than a year earlier, barely easing from a 45.5 percent rise in August.

A slowdown in price rises would be welcomed by Beijing as confirmation its policies are working.

After lifting interest rates five times and banks’ reserve requirements nine times since October 2010, China’s rulers have put policy tightening on hold as a slowdown in Europe and the United States threaten global growth.

More about: China, Economy, Inflation

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