While many analysts are focused on the US-China Trade War, more specifically tariffs and deadlines, food prices are now starting to spike in key base meats such as pork. Pork prices spiked 69.3% in September after an increase in August of 46.7% according to the National Bureau of Statistics in Beijing. This pushed food prices higher in China by 11.2% in September and this was after a 10% increase in the previous month. This piece was sourced from CNBC and is attributed to Yen Nee Lee.
The shocking increase in pork prices is a key driver in the overall prices of foods in China – and at least for now, prices continue to rally which causes concern in the CCP. The outbreak of African Swine Fever is now expected to cause the overall numbers of pigs in China to drop by 50% into December of this year. This figure was part of a research piece by the Dutch Bank, Rabo Bank which shows this issue as getting much worse before getting better.