A rise in demand due to eased Covid curbs may further increase prices
Consumer prices in China grew 2.5% year-on-year in June, beating economists’ expectations of a 2.4% gain, the National Bureau of Statistics data revealed on Saturday.
The released numbers demonstrate the strongest pace in two years and compare with 2.1% growth recorded in May. In June, food prices grew by 2.9% from a year earlier, while non-food prices grew by 2.5% last month, year-on-year, up from a reading of 2.3% in May.
Though consumer demand remains weak due to China’s strict Covid control measures along with sporadic virus outbreaks, acceleration in consumer prices is being attributed to the rising cost of pork and energy.
Pork is a key product in China’s consumer price index basket. Prices for the meat dropped at a slower pace of 6% in June, following a 21.1% drop in May. On a month-on-month basis, pork prices grew 2.9%.