China Food Inflation

China's food prices declined by 0.4% year-on-year in May 2025, quickening from a 0.2% fall in the previous month and marking the fourth consecutive monthly drop. The main sources of downward pressure were fresh vegetables (-8.3% vs. -5.0% in April), eggs (-3.5% vs. -0.5%), cooking oils (-1.7% vs. -1.8%), and milk (-1.5% vs. -1.2%). In contrast, inflation accelerated for fresh fruit (5.5% vs. 5.2%), reflecting the impact of heavy rainfall in some parts of the country and ongoing supply chain disruptions amid U.S. tariffs. Meanwhile, pork price growth slowed further (3.1% vs 5.0%), with prices expected to remain volatile for the rest of the year amid marginally tightening supply and weakening consumer demand.