Egg prices have increased by 12.0% year-on-year and 4.4% month-on-month, marking the highest rise among food categories for June. Egg prices have now been on an upward trend for three consecutive months.
Pig slaughter volumes remain high, ensuring ample pork supply. Pork prices fell by 0.9% month-on-month, with the rate of decline narrowing significantly.
Driven by increased cooling demand for the summer peak electricity consumption period, prices for refrigeration and air conditioning equipment manufacturing rose by 1.5% month-on-month and 7.9% year-on-year.
Data released on July 10th shows that in June, the Consumer Price Index (CPI) for Sichuan province decreased by 0.5% month-on-month, with the decline widening by 0.3 percentage points from the previous month. Year-on-year, the CPI increased by 0.9%, though the growth rate slowed by 0.5 percentage points compared to May.
What's driving the sustained rise in egg prices?
The primary reasons are production capacity adjustments and rising costs. The layer hen farming industry experienced deep losses last year, leading farmers to cull older hens early. This resulted in a lower hen inventory and a production capacity gap. Furthermore, summer heat reduces the laying rate of hens. The shorter shelf life of eggs in summer also increases spoilage and raises operational costs for merchants. Additionally, pre-holiday stockpiling demand ahead of the Dragon Boat Festival contributed to pushing prices higher.
Prices for vegetables, pork, and other food items declined. In June, a seasonal abundance of fresh vegetables and fruits led to ample market supply, causing prices for fresh vegetables and fruits to fall by 3.4% and 1.4% month-on-month, respectively. As pig slaughter volumes remain elevated, pork supply is sufficient. Pork prices dropped by 0.9% month-on-month, though the pace of decline slowed noticeably.
Overall, Sichuan's CPI remained stable in June. The core CPI, which excludes food and energy prices, rose by 1.1% year-on-year, maintaining an upward trend for the 16th consecutive month.
Trends in producer prices
Regarding the Producer Price Index (PPI), Sichuan's PPI continued its mild upward trajectory in June, increasing by 3.0% year-on-year, which is 0.8 percentage points higher than the previous month's increase. Month-on-month, the PPI decreased by 1.0%, shifting from an increase in May to a decline in June. Influenced by rising cooling demand for the summer peak, manufacturing prices for refrigeration and air conditioning equipment climbed by 1.5% month-on-month and 7.9% year-on-year.
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