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China food prices spike 20.6% in January

China’s consumer prices rose at the highest rate in more than eight years, official data on Monday showed, with inflation more than expected on the back of lunar new year demand and a deadly virus outbreak.

The consumer price index (CPI), a key gauge of retail inflation, came in at 5.4% last month on-year, up from 4.5% in December – with prices of pork and fresh vegetables pushing up costs. It’s the highest CPI rise since October 2011.

The report showed that food prices spiked 20.6%, including pork which rose 116% from a year ago, up from the 97% rise in December. The on-month rise for pork was 8.5%.

“People also tend to hoard food and other supplies in this kind of situation. The hoarding will most likely push up prices,” said Lu Ting of Nomura in a research note last Thursday.