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In Foreign Affairs

Swine fever boosts Chinese inflation

15th October 2019

Swine fever boosts Chinese inflation Pin It

Chinese inflation increased in September compared to a month earlier. This appears from data from the national statistics office. The African swine fever that prevails in Asia was one of the drivers of price increases. Without the influence of the strongly fluctuating prices for food and energy, consumer prices remained stable.

Inflation was 3 percent on an annual basis, slightly higher than the 2.8 percent in August. That was a slightly higher increase than the average economists had taken into account. The price of food went up by 11.2 percent and that of pork was more than two thirds higher.

At the same time, the prices charged by Chinese producers for their products fell. They went down by 1.2 percent, just as the average economists had expected. This decrease makes it more difficult for companies to make a profit and therefore also to pay off their debts.

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