China?s inflation jumped to its highest in three years with its consumer price index surging 6.4% year-over-year in June. The spike has been fueled by escalating food prices despite the central bank?s effort to tame inflation by pushing up the RRR (Reserve Requirement Ratio) for commercial banks six times this year, while raising interest rates five times since September, most recently on July 6.
Inflation Hinges on Hogs
Food prices, which weight about 30% of the CPI basket, climbed 14.4% from a year earlier, and the price of pork, in particular, increased 57.1% year-on-year, and 11.4% month-on-month and is the engine behind the runaway consumer inflation train, according to figures released by the National Bureau of Statistics and reported by China Daily.
Pork, a staple of the Chinese diet, hit a new high in June due to rising costs and short supply. One analyst based in China warned that price
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