China consumer prices hit a two-year high

Customers buying pork at a food market in Shanghai, China. Prices of pork, a food staple in China, rose by 20.2% in July 2022 compared to a year ago, official data showed.

Pork prices rebounded in July as China's consumer price index hit a two-year high.

Pork prices in China increased in July from a year ago. The increase was the first since September 2020.

Pork prices recorded their largest month-on-month surge on record.

The pork price surge in July was caused by farmers' reluctance to sell in order to get higher prices in the future, according to Bian Shuyang.

Bian thinks it will be hard for pork prices to go up.

Consumer demand for pork will be supported by two Chinese holidays.

The analyst says that live hog producers are operating at a profit, a sign that there will be more supply in the future.

Over the last three years, pork prices have swung wildly as hog farmers have had to battle deadly disease.

The National Bureau of Statistics reported that fresh fruit and vegetable prices increased in July.

Wednesday's inflation data reflected lackluster demand in China's economy.

The consumer price index rose in July, but not as much as expected.

The Covid outbreaks in many cities and the lack of further policy stimulus may have led to weaker growth in July.

The president and chief economist of Pinpoint Asset Management said in a note that non-food prices declined in July.

He said that the Covid outbreak may have led to weaker growth in July.

The tourism price component only increased in July from a year ago.

In the last few weeks there have been covid outbreaks that have caused the cancellation of flights and venue closings.

Wind data shows that last month was the highest since July 2020 when the index also rose.

The U.S. is expected to release its consumer price index data overnight. The consumer price index is expected to rise by 8.7% in July, down from 9.1% in June, according to the economists.

China's producer prices came in below expectations.

The 4.2% year-on-year increase for July missed the forecast of 4.8% growth by a whisker.

The chief China economist at Nomura said in a note that there was limited potential upside to the inflation in China.

The report was contributed to by CNBC.