Consumer prices throughout China jumped by 11.2% in September year-on-year, driven by pork prices that skyrocketed a historic 69.3%. Pork prices are being pushed upwards by the raging African swine fever (ASF) epidemic that's now killed half of China's total hog population since this illness began a year ago.
ASF stands to reduce China's surviving pig population by half by the end of this year, according to a forecast by Dutch bank Rabobank.
The National Bureau of Statistics (NBS) reported the massive spike in pork prices last month was much higher than the 46.7% increase recorded in August. Pork prices for October remain high compared to October 2018.
The continuing jump in the price of pork nationwide caused food prices in China to rise by 11.2% in September compared to the 10% increase in August, said NBS. China is the world's top producer and consumer of pork.
The bureau said the non-stop increase in pork prices is the major driver in the overall increase in China's consumer prices. China's CPI (consumer price index) for September increased 3% year-on-year -- the highest in nearly six years.
On the other hand, factory prices as measured by the producer price index (PPI) decreased by 1.2%, reflecting weak consumer demand. Economists polled by Reuters had expected China's CPI to increase by 2.9% in September, and the PPI to fall by 1.2%.
In September, Beijing called on China's pig farms to boost pork supply, describing this order as a "major political task." The central government has also tried to ease the pork shortage by releasing pork supplies from its strategic reserves.
Analysts, however, argue "there are few signs that these measures have been effective: pigs continue to die in large numbers and pork price inflation is accelerating."
Since 2018, Chinese farmers have been slaughtering massive numbers of pig herds to contain the spread of ASF. The current outbreak was first detected in a herd last August said the UN Food and Agricultural Organization (FAO).
China admits its pig herd shrank by a third in July. As a result, pork prices jumped to near-historic levels. Food price data issued Sept. 10 showed pork prices rising 47% in August after increasing 27% in July.
