A supplier packs seafood for a customer in a booth in Qingdao, China's eastern Shandong Province, October 16, 2018.
AFP | Getty Images
China's food prices in July jumped 9.1% from a year ago, data from the National Bureau of Statistics on Friday showed, as the country struggled for rising pork prices amid the spread of African swine fever.
In particular, pork prices rose 27% from a year ago in July, while fresh fruit prices rose 39.1
July figures follow a 8.3% jump from the year before in June. Non-food items in July were 1.3% higher, government data shows.
Inflation data came after China confirmed on Tuesday that it will suspend US agricultural imports in response to President Donald Trump's new tariffs.
China's consumer price index (CPI) rose 2.8% from a year ago in July, slightly higher than the 2.7% analysts in a Reuters survey expected.
"Surging of pork prices continued to push up consumer price growth," says Julian Evans-Pritchard, senior China economist at Capital Economics. But "weakening demand pulled producer prices into negative territory last month," he wrote in a Friday note.
The producer price index fell 0.3% in July from a year ago, compared with a 0.1% decline analysts in the Reuters survey had expected.
It was the first time China's PPI – a measure of corporate profitability – fell in three years, raising concerns about deflation risk in the world's second-largest economy.
This comes as China and the United States continue to be locked into a protracted tariff fight that has continued for more than a year. Both countries have released billions of dollars in additional goods to each other's goods, and escalating tensions have led to world markets damaging the global economic outlook.
With accelerating consumer prices and the return on falling producer prices, "the result is that China is facing the worst of both worlds," Evans-Pritchard wrote.