Chinese farmers save their pigs in flood waters after heavy rains hit the northeast of China in June. Last year, the price of pork emerged more than 50% in China.
NEW YORK (CNNMoney) - Think prices rising rapidly in the United States? Inflation goes even more wild pig in China.
China--a broad measure of consumer price index price pay for food, housing, clothing and other common expenses - showed prices rose 6.4% in the 12 months ending in June, the National Bureau of statistics China reported Saturday.
Which marks the fastest rate of inflation since July 2008 and an acceleration in the rate of 5.5% in May.
But unlike the United States, where inflation led mainly by an outbreak of gas prices, economists say China's inflation problem is due to soaring food prices place - namely, pork.
Food, which represents more than one-third of monthly expenses, rose 14.4% to a Chinese person of average year. Prices of meat and poultry are the worst offender in this category, breaking an exorbitant sum 32.3%. Pork prices have increased to 57.1%.
Mark Williams, Senior Economist of China for the economy of the capital, estimates of pork prices only contribute as much as 2 percentage points at the rate of overall inflation in June.
The price of retail of pork has increased 15% over the past four weeks and it is now more than 50% level year - ago, he said in a note to investors.
"A decline in population of pigs of China at the end of the year is now resulting in an increase in the price of pork," he wrote.
That hurts the purchasing power of the Chinese consumers who buy pork, but it is also a good sign that inflation in China is not widespread, said Carl Weinberg, Chief Economist at high frequency economics.
"The price of food are the only thing that have increased substantially," he said. Who told me, that it is not a change in price as a whole. »
The Chinese Government has stated that one of its main economic goals tame inflation at a rate of 4% is for the next five years.
Weinberg and Williams, think that it will miss its target for this year, but the Government will be not too concerned. After the increase in interest rates three times year, including an increase in rates this week, an excess of credit is not the problem.
"Inflation is high not due to excessive loans, the rate of interest being too low, capital inflows or even a recovery in the demand," said Williams. "The increased inflation is simply the result of a cyclical decline in power of pork will be reversed in time."
As for Chinese exports to the United States, Weinberg, said not to worry - rapid rise in food prices is not likely to have a major impact on the export price.
"We want not see an increase in the price of T-shirts in Wal-Mart or iPads at the Apple Store due to inflation in China," he said.
Helena Hong-CNN Beijing contributed to this report
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