Pork prices push November inflation to 9-year high
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Rising prices of pork and processed meat raised the November consumer price index (CPI) a record 0.96 percent over the previous month.
Dwindling supply of pork following the African swine flu outbreak in Vietnam saw prices of pork and other processed meat products to soar in November, leading to the biggest CPI increase in 9 years, according to the latest report by the General Statistics Office (GSO).
However, over the last 11 months, the CPI had only risen by 2.57 year-on-year, the lowest increase in the last three years. The CPI in November, compared to December-end 2018, had increased by 3.78 percent.
Speaking to VnExpress, merchants in Ho Chi Minh City said that prices of pork substitutes such as beef and seafood rose as customers made the switch, coupled with heightened demand as the New Year approaches.
Vietnam has had to cull 5.9 million pigs infected with African swine fever since the beginning of the year, equivalent to 337,000 tons of pork, according to Phung Duc Tien, Deputy Minister of Agriculture and Rural Development.
This has resulted in pork prices rising by 19 percent since last November and could rise by a further 10-15 percent by the end of this year with an expected shortage of 200,000 tons, according to the GSO.
Questions & Answers
Q.What is the primary reason for the significant increase in the consumer price index last November?
What is the primary reason for the significant increase in the consumer price index last November?
The November consumer price index rose due to dwindling pork supply following the African swine flu outbreak. This led to soaring prices for pork and other processed meat products.
Q.How has the African swine flu outbreak impacted Vietnam's pig population and pork supply?
How has the African swine flu outbreak impacted Vietnam's pig population and pork supply?
Vietnam has culled 5.9 million pigs due to the outbreak, amounting to 337,000 tons of pork. This has already caused a 19 percent rise in pork prices since last November.
Q.What effect have rising pork prices had on the cost of other food items?
What effect have rising pork prices had on the cost of other food items?
Prices of pork substitutes like beef and seafood have also increased. This is due to customers switching their purchases and heightened demand as the New Year approaches.
Q.What was the overall consumer price index increase for the first eleven months of the year?
What was the overall consumer price index increase for the first eleven months of the year?
The consumer price index had risen by 2.57 percent year-on-year over the first eleven months. This represents the lowest increase recorded in the last three years.
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