Chinese authorities estimated the growth rate of hog prices will drop steadily after July and August, while hog prices themselves are expected to remain relatively high due to high production costs.
On July 9, the State Statistical Bureau announced that June's food price was 14.4 points higher than the same time last year, resulting in a 4.26% increase in the Consumer Price Index. Pork prices grew 57%, which drove the CPI up 1.37 points. The result indicates that food prices continue to be the major force pushing up China’s CPI.
Pork prices soared in June, and authorities estimate food prices in July will be 0.7 points higher than in June and 14.2 points higher compared to the same period in 2010.