China Inflation rises on soaring food prices

China Inflation rises on soaring food prices

THE Consumer Price Index grew 4.4 percent in June, the fastest pace in three years, and gained 3.2 percent in the first half of this year, said National Bureau of Statistics spokesman Li Xiaochao,

Surging food prices spurred China's inflation, Li said in Beijing today.

Food, making up about one-third of the CPI, contributed 2.5 percentage points to the growth in the six months, Li said.

Egg prices jumped 27.9 percent and grain prices grew 6.4 percent in the period, Li said.

Meat prices surged 20.7 percent through June from a year earlier. The jump was mainly attributed to a 74.6 percent surge in pork prices in June from a year earlier after an outbreak of fatal blue-ear disease in pigs.

The elimination of the disease has become a top priority as it can dispel the fears of breeders and convince them to raise more pigs.

Huang Hai, assistant minister of commerce, said last week that pork will continue to be expensive in the latter half of the year as a supply shortfall takes time to resolve.

China will "strictly control" corn processing and exports, the National Development and Reform Commission said. Corn is the main feed for pigs. New corn-processing projects and expansion of existing projects should be stopped, it said.