2) Seafood getting more affordable
Historically high pork prices are making seafood a more affordable purchase in China – particularly so in the case of lower-priced staples like carp, ribbonfish and croaker, but also in regard to tilapia and imported pangasius, which are being consumed in the convenience side of the hospitality sector. China’s consumer price index (CPI), the main driver of inflation, rose sharply in November, by 2.3 percent with food (and particularly the protein of choice, pork). Pork price inflation eased in November, but could accelerate in the run up to Chinese New Year, with China still in the throes of a cyclical pig shortage, while prices for feed such as soybeans start to rebound. Wholesale prices for pork picked up in November, though prices will sink beginning in the middle of 2017 if previous cycles hold true this year.
