Pork prices have been a driving force behind China's inflation in the past few months. Now with inflationary pressures looking to lift a little, changes in the cost of pork is being welcomed.

The average purchasing price for every 50 kilograms of pork stood at 886 Yuan in October, which is a more than ten percent drop from September.

What economists read on paper has been felt firsthand by consumers and businesses at this food market.

Jin Hongyang, food market director, said, "Now the purchasing price for pork is about 15% lower, so we are able to take 100 yuan off the management fees for each stall."

According to the pricing department in the eastern province of Anhui, the average purchasing price for every 50 kilograms of pork stood at 886 Yuan in October, which is a more than ten percent drop from September. Nationally, figures from 31 provinces and municipalities show a 4% to 7% decline in pork prices in October.

Now the prices are down, the customers are back.

Dong Wanbing, food market manager, said, "When the prices were high, there weren't many customers. Even those who used to sell meat switched to selling vegetables. Now business is back with a 40% increase in sales."

Experts say this long-waited drop in pork prices is the result of a combination of market forces and government policies. Although the amount of pork imported couldn't directly alter the market at home, they were enough to address immediate demand and send a signal in the long run.

Zhao Jianfeng, Anhui Commerce Bureau, said, "Readjustment on the macro-level has led to an increase in the supply of pork. Through tapping into reserves and importing from other countries, market demand is met."

According to officials from China's Development and Reform Commission, although inflationary pressures are looking to lift, macro-level regulation and control on prices will remain a key task.

Go to Forum >>0 Comment(s)