Mubasher: China’s consumer price inflation remained unchanged during August, despite a surge in pork prices, official data showed on Tuesday.

Consumer price index (CPI), a key tracker of inflation rose by 2.8% year-on-year last August, unchanged from July’s rate, China’s National Bureau of Statistics (NBS) said.

This put the headline inflation figure within the range of the government’s targeted rate of under nearly 3% this year.

The most notable catalyst of inflation was a surge of 46.7% in pork prices last month, picking up from the preceding month’s 27% increase.

This was caused by the outbreak of African swine fever, after more than 1 million pigs were culled since last June.

Total meat prices, comprising pork, beef and mutton, climbed almost by 31%, compared with an 18.2% rise in the prior month. The broader food prices jumped by 10%.

Non-food prices edged up by 1.1%, as clothing prices rose by 1.6% and housing costs went up by 1%.

The only declines were seen in the prices of transport and communication, which dropped by 2.3%.

On a monthly basis, the CPI rose by 0.7% in August, after rising by 0.4% in July.

On a side note, China’s producer price index (PPI), which gauges costs of goods at the factory gate, fell by 0.8% in August from a year ago, after falling into a negative territory in July.

Chinese manufacturers have been once again prompted to reduce their prices for the second month in a row as the nation is facing a flaring trade conflict with the US as well as faltering domestic demand.

By 7:36 am GMT, the Chinese yuan (CNY) strengthened against the US dollar, with the USD/CNY pair falling by 0.23% to CNY 7.1058.