Economics

China’s Consumer Inflation Hits Two-Year High on Pork Rally

  • Factory-gate inflation moderates on cooling commodity prices
  • Covid Zero curbs still stifle spending on services: economist

Customers purchase pork at a food market in Shanghai in June. 

Photographer: Qilai Shen/Bloomberg
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China’s consumer prices grew faster than expected in June, partly driven by a rebound in pork prices, although the government’s Covid Zero strategy continued to depress demand. Factory-gate inflation moderated on cooling commodity prices.

Consumer prices grew 2.5% last month from a year earlier, beating economists’ expectations of a 2.4% gain, the National Bureau of Statistics data showed Saturday. That is the strongest pace in two years and compares with 2.1% growth in May.