China pork price falls as world food leaps

World food prices rose in May at their fastest monthly rate in more than a decade but pork prices in mainland China dropped.

World food prices posted a 12th consecutive monthly increase to hit their highest level since September 2011, the United Nations food agency said.

On a year-on-year basis, prices were up 39.7 percent in May.

The agency also issued its first forecast for world cereal production in 2021, predicting output of nearly 2.821 billion tonnes - a new record and 1.9 percent up on 2020 levels.

Food prices in mainland China dropped 0.8 percent from a week ago, with pork prices falling 3.3 percent, said the Ministry of Commerce.

The wholesale price of pork was 24.71 yuan per kilogram, down 3.3 percent week-on-week. The average wholesale price of 30 kinds of vegetables was 4.3 yuan per kilogram, down 0.2 percent. Rice and oil prices also had a slight fall.

Meanwhile, luxury brands are developing a bigger offline presence in mainland China.

Mainland luxury goods purchasing power has been flowing from overseas shopping to local purchases, said John Lam, UBS head of Hong Kong and China real estate research.

Luxury goods purchased overseas (including Hong Kong) will drop from 68 percent in 2020 to 36 percent in 2025.

Domestic purchases will increase from 31 percent to 55 percent in five years, he said.