CPI hit a 15-month high in May and prices of various fruits have dropped significantly.

 CPI hit a 15-month high in May and prices of various fruits have dropped significantly.

Daily Economic News reporter noted that this increase has reached the highest level since March 2018, is also the highest record of CPI data since the beginning of this year. It is worth noting that food prices rose by 7.7% in May, more than twice the increase in CPI this month.

Food, tobacco and alcohol prices rose the most

In May, fresh vegetable prices rose 13.3% year-on-year, affecting CPI by about 0.31 percentage points; animal meat prices rose 12.5% year-on-year, affecting CPI by about 0.51 percentage points. Among them, pork prices rose 18.2% higher than the average level of livestock, affecting CPI by about 0.38 percentage points.

As a result of the above factors, the price of food, tobacco and alcohol also ranked first among the eight categories of commodities and services that constitute the CPI index in May. In May, food, tobacco and alcohol prices rose by 5.8% year on year, affecting CPI by about 1.69 percentage points. At the same time, the growth of other seven categories of goods and services did not exceed 3% in the month, and transport and communications prices even fell by 0.9%.

Fresh Fruit Price Increase Caused by Reduced Yield and Slow Season

The crazy trend of fruits and other foods in May did have a very significant impact on CPI in the same period. So, how did the situation of food prices soaring come about?

Han Jun also pointed out that pork prices rose earlier than last year. Since August last year, African swine plague and cyclical factors have overlapped, resulting in continued decline of fattening pigs and breeding sows, resulting in a tight market supply stage.

Consumers need not worry about this. According to a series of data released by the authorities, since June, the price of many kinds of fruits has declined significantly. With a large number of seasonal fruits coming on the market, it is not difficult to achieve fruit freedom easily.

Taking the wholesale market of Xindai District in Beijing as an example, the average wholesale prices of Red Cherry, Jingxin Watermelon and Feizixiao Litchi on June 4 were 23 yuan, 2.6 yuan and 16 yuan per kilogram, respectively, which were 48.9%, 46.9% and 42.4% lower than those at the beginning of May.

Reporters also noted that, with the help of modern logistics and business, a large number of imported fruits have entered the Chinese market, which will further guarantee the current domestic fruit supply in a stable and orderly manner. For example, at the end of May this year, Uzbekistan, a fruit-producing country in Central Asia, dispatched 18 special planes for the direct supply of centimeters to China, equivalent to half of the countrys civil aviation capacity. On the shopping website, the price of these Cheli is only about 50 yuan per kilogram, which is more than 50% lower than the market average price.

The executive meeting of the State Council held on June 5 emphasized that agricultural production and adequate supply of agricultural products are the important basis for stabilizing prices, stabilizing expectations and ensuring peoples livelihood, and are of great significance to the current complex situation, promoting the expansion of consumption and maintaining the smooth operation of the economy. We should encourage supplementary feeding, strengthen production of poultry, beef and mutton, and take more measures to increase meat supply. We should do a good job in oil production such as soybeans, ensure the supply of fresh agricultural products such as fruits and vegetables, and stabilize the price level.

Reporters also noted that oil prices, another important variable affecting prices, are currently relatively stable and may fall further. On June 11, the National Development and Reform Commission announced that since 24:00 on June 11, 2019, the retail price limits for domestic gasoline and diesel have been lowered by 465 yuan and 445 yuan per ton respectively. After this adjustment, the retail price of 92# gasoline in most areas of China will return to the era of 6 yuan.

Source: Daily Economic News Author: Li Keyus Responsible Editor: Wang Xiaowu_NF