Soaring pork prices keep China's inflation at 7-year high
China's weakening economy is dealing with high inflation.
Soaring pork prices that nearly doubled in December over a year ago kept inflation at a seven-year high despite government efforts to ease meat shortages caused by a disease outbreak.
Surging inflation adds to challenges for communist leaders who are trying to shore up slowing economic growth and resolve a tariff war with Washington.
The price of pork rose 97 percent over a year earlier despite increased imports of China's staple meat and the release of thousands of tons from government stockpiles.
Food prices rose 17.4 percent and overall consumer inflation was 4.5 percent, well above the ruling Communist Party's official target of 3 percent. That matched November's inflation, the highest since 2012.
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China produces and consumes two-thirds of the world's pork but supplies plunged as authorities destroyed pigs and blocked shipments to contain an outbreak of African swine fever that was confirmed in August 2018. Farmers have allowed herds to dwindle.
Global pork prices have climbed as Chinese importers buy more from Canada, Europe and other suppliers.
In this March 26, 2018 photo, pigs belonging to Jeff Rehder stand in their shed, in Hawarden, Iowa. Rehder stands to lose potential revenue on his hogs after China responded to Trump's announced plans to impose tariffs on products including Chinese s (AP)
Beijing announced in September it would lift punitive tariffs imposed on U.S. pork and soybeans during its trade war with Washington. That would ease pressure on Chinese pig farmers who use soy as animal feed.
CHINA PORK TARIFFS RUINED 'OPPORTUNITY OF A LIFETIME' FOR U.S. FARMERS
U.S. and Chinese officials are expected to sign the first phase of an official trade deal between the two countries on Jan. 15, which President Trump said during an October press briefing announcing Phase One will include an agreement from China to buy $50 billion worth of U.S. agricultural products, including pork.
The U.S. Department of Agriculture forecast in October that China's 2020 pork production would fall 25 percent from a year earlier. The forecast gap of 12 million metric tons would be equivalent to almost the entire U.S. annual production.
Authorities destroyed 390,000 pigs last year and a total of 1.2 million since the start of the outbreak, the Agriculture Ministry reported Wednesday.
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Forecasters expect shortages to persist because many Chinese farmers have stopped raising pigs and others will need time to rebuild their herds.
The Associated Press contributed to this article.