Pork Prices Drop for the First Time in Three Months
For the first time in three months, pork prices have dropped 0.2 percent further pushing the government’s efforts to contain inflation in three years. The third week of July saw an increase in the supply of pork and demand for the meat slowed, indicating the first decline since April.
Statistics showed that pork prices in June shot up 57 percent year on year. Policymakers have made the stabilizing of prices one of their top priorities in the second half of this year. Interest rates have already been increased by the central bank three times and reserve requirements for lenders have been increased six times to control inflation.
Analysts say this decrease in prices is good news but its too early to tell if the decrease will continue this early and with one week of change to have an outlook on the change in inflation. To further boost pork supplies the government have issued subsidies to pig raisers and hog producers.
There are 200,000 tons of pork in reserve and the stock will be released at the right time to help in the stabilization of the prices, other provinces have been slowly releasing the stock reserves and prices are likely to stabilize for the remainder of the year as supplies gradually increase.