The decline in pork prices was the main reason for the decline in CPI. Pork prices fell 30.1% year-on-year in October. Experts: Pork prices are expected to return to low levels in the future – Mobile Finance

The decline in pork prices is the main reason for the decline in CPI. Pork prices fell 30.1% year-on-year in October. Experts: Pork prices are expected to return to low levels in the future.

Hot News

2023-11-16 16:40:14

Data released on the website of the National Bureau of Statistics on the 9th showed that in October 2023, the national consumer price dropped by 0.2% year-on-year. Among them, urban prices dropped by 0.1% and rural prices dropped by 0.5%; food prices dropped by 4.0% and non-food prices increased by 0.7%; consumer goods prices dropped by 1.1% and service prices increased by 1.2%. On average from January to October, the national consumer price increased by 0.4% compared with the same period last year.

In October, the national consumer price dropped by 0.1% month-on-month. Among them, urban prices dropped by 0.1% and rural prices dropped by 0.1%; food prices dropped by 0.8% and non-food prices remained unchanged; consumer goods prices dropped by 0.1% and service prices dropped by 0.1%.

From a year-on-year perspective, CPI fell by 0.2%, mainly due to the expanded decline in food prices. Food prices fell by 4.0%, an increase of 0.8 percentage points from the previous month, affecting the CPI to fall by about 0.75 percentage points. Among food, the price of pork fell by 30.1%, the decline expanded by 8.1 percentage points, affecting the CPI to fall by about 0.55 percentage points.

According to monitoring by the Ministry of Agriculture and Rural Affairs, the “Agricultural Products Wholesale Price Index 200” on November 16 was 116.81, an increase of 0.25 points from yesterday, and the “Vegetable Basket” product wholesale price index was 116.40, an increase of 0.30 points from yesterday. As of 14:00 today, the average price of pork in the national agricultural wholesale market was 20.07 yuan/kg, down 1.0% from yesterday.

Experts said that the recent downturn in pork prices is mainly due to the impact of abundant supply and relatively weak terminal consumption. It is expected that from December to the Spring Festival next year, the increase in demand will drive pork prices to stop falling and stabilize. However, due to sufficient pig production capacity, pork prices are expected to return to low levels in the later period.

The Economic Daily article pointed out that in the long run, it will be a trend for the domestic pig industry to enter a period of low profits. Regarding this long and complex special pig cycle, some industry experts admitted frankly that the change in the pig cycle may be due to the power of capital. Today’s market suppliers have changed from farmers to large companies, especially after the swine fever incident. Concentration, under the influence of capital, pig companies hope that competitors will withdraw from the market, resulting in market supply remaining high. Since the end of last year, pig prices have continued to run below the cost line for more than seven months. Capital has poured in due to the previous boom cycle, but there is no turning back. This year, pig prices have suffered the longest loss cycle in history. Now it is up to us to see who can survive. at last.