China's Deflation Threatens Economy as Pork Prices Plummet

Plunging pork prices in China, driven by a pork glut and weak domestic consumption, are pushing the country closer to deflation. Retail pork prices in China dropped 31.8% in November compared to a year ago, contributing to a 0.5% year-on-year decline in the consumer price index. Falling pork prices, along with other factors such as falling real estate prices and aggressive discounting by e-commerce retailers, are concerning as they may lead to consumers postponing investments or purchases. China's oversupply of pork is also impacting the global meat market, creating a deflationary impulse. Additionally, changing consumer preferences towards healthier alternatives and a decline in demand for meat are further contributing to the deflationary risks in China.