Economics
China's Changing Inflation Keeps Swine Fever Infection at Bay
- Even with pork and veg prices spiking, inflation is contained
- Value of pork and food in CPI trending down as people get rich
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A surge in the price of pork in China due to African Swine Fever is having less of an effect on inflation than it once would have, helping the central bank keep monetary policy supportive.
New research by Bloomberg Economics shows that the influence of food prices in general is declining, as the nation becomes wealthier and spends a greater share of income on other things. While the Consumer Price Index used to be jokingly called the ‘Consumer Pork Index,’ that’s less accurate these days.