MNI BRIEF: China's NDRC Taps Pork Reserve to Curb Inflation

China released more pork reserves in an attempt to cool prices of the popular meat that helped drive September's CPI to a 2.8% y/y rate, a statement on the National Development and Reform Commission social media account said on Wednesday.

The reserve release was prompted by an assessment that pork prices were in a “warning range” and at a “historic high”, the NDRC said.

Pork prices increased 36% y/y in Sep due to seasonal demand and a reluctance by farmers to sell. Farmers need to maintain normal rearing cycles and should not hold back on selling which leads to price instability, the NDRC said. (See MNI BRIEF: China Sep CPI Rises 2.8%; Highest Since April 2020).

Reserves of key commodities would be increased to maintain price and supply stability, the NDRC told reporters on Monday. (See MNI BRIEF: China Growth Recovering, Investment Welcome - NDRC).

China headline 2.8% inflation was viewed by analysts as masking weak domestic demand given core inflation increased by 0.6%. (See MNI BRIEF: Pork Prices Boost China CPI, Masks Weak Demand - Analyst)