NDRC: Pork Price Rise Won't Cause Serious Inflation

by 5m Editor
27 August 2009, at 12:06pm

CHINA - Recent increases in pork and egg prices will not lead to serious inflation in China, the country's economic planning agency said.

Higher prices for pork and eggs reflected a recovery from ultra-low levels and seasonal fluctuations rather than the start of food-driven inflation, the National Development and Reform Commission (NDRC) said in a statement on its website.

"The overall price level will not see any comprehensive, continuous or significant rise," the agency said.

A spike in pork prices after disease ravaged the country's pig population in 2007 sparked China's worst inflationary bout in more than a decade, according to Australia's Business Spectator.

Pork prices have plummeted over the past year and consumer inflation has been negative since February, but pork prices have now risen more than 10 per cent in the past 11 weeks.