China's pork prices broke the record with the increase of 4.5 percent from a week earlier to 24.68 yuan ($3.81) a kilogram as of June 24 last week, according to the Country's Ministry of Commerce.
The pork prices, a major contributor of China's soaring inflation, contributed 1.2 percentage points to the 5.5 percent CPI inflation in May.
In addition, China's biggest driver of its headline consumer price index, food inflation increased 11.7 percent in the year to May, raising the annual inflation to the 34-month-high in May.
China government has been struggling to curb inflation. It has raised interest rates four times since October last year. Furthermore, China's central bank has raised the reserve requirement ratio six times this year.
China's Premier Wen Jiabao on Monday said it would be difficult to hold the country's inflation under 4 percent this year. It indicated Beijing may feel hard to reach this goal.
Many agencies and analysts released CPI forecasts in June saying China's CPI will exceed 6 percent. Some of them, including Bank of Communications, Shanghai Pudong Development Bank and Citibank, forecast that the CPI in June would hit 6.2 percent.
CPI inflation may reach 6.3 percent in June, with 1.6 percentage points contributed by pork prices, said Lu Ting, economist at Bank of America Merrill Lynch in China.
"With no significant diseases, rising profits of pig farming driven by surging pork prices likely will soon attract new supply, which would curb pork prices." the WSJ cited Lu as saying.
The pork prices, a major contributor of China's soaring inflation, contributed 1.2 percentage points to the 5.5 percent CPI inflation in May.
In addition, China's biggest driver of its headline consumer price index, food inflation increased 11.7 percent in the year to May, raising the annual inflation to the 34-month-high in May.
China government has been struggling to curb inflation. It has raised interest rates four times since October last year. Furthermore, China's central bank has raised the reserve requirement ratio six times this year.
China's Premier Wen Jiabao on Monday said it would be difficult to hold the country's inflation under 4 percent this year. It indicated Beijing may feel hard to reach this goal.
Many agencies and analysts released CPI forecasts in June saying China's CPI will exceed 6 percent. Some of them, including Bank of Communications, Shanghai Pudong Development Bank and Citibank, forecast that the CPI in June would hit 6.2 percent.
CPI inflation may reach 6.3 percent in June, with 1.6 percentage points contributed by pork prices, said Lu Ting, economist at Bank of America Merrill Lynch in China.
"With no significant diseases, rising profits of pig farming driven by surging pork prices likely will soon attract new supply, which would curb pork prices." the WSJ cited Lu as saying.
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