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Message: [QUOTE="SOLIDECN, post: 227206, member: 80239"] [JUSTIFY][B][U]China Experiences Steepest Food Price Fall Since 2021[/U][/B] In November 2023, the cost of food in China experienced a notable decrease, dropping by 4.2% compared to the same time last year. This decrease in food prices was more significant than the 4.0% drop observed in the previous month. In fact, this trend of falling food prices has been ongoing for five consecutive months, marking the most rapid decline since September 2021. A key factor in this decline was the dramatic fall in pork prices, which went down by 31.8%, surpassing the 30.1% decrease seen in October. This larger drop in pork prices was unexpected and is thought to be due to a combination of unusually warm winter weather and a continued adequate supply following the Golden Week holiday in early October. In addition to pork, other food items also saw price reductions, including cooking oils (down by 4.1%), eggs (decreasing by 8.8%), and milk (a slight decrease of 0.3%). However, not all food categories followed this downward trend. Fresh vegetables, for example, saw a slight increase in price (0.6%), reversing the previous month's decline of 3.8%. Similarly, the cost of fresh fruit accelerated, with prices rising by 2.7% compared to a 2.2% increase in the previous month. In terms of the economic impact, this trend of falling food prices can have mixed effects. On one hand, lower food prices can benefit consumers by reducing their living expenses, potentially increasing their disposable income and encouraging spending in other sectors. On the other hand, for producers and farmers, falling prices can reduce income and profitability, possibly leading to challenges in the agricultural sector. Overall, the impact on the economy would depend on the balance between these consumer and producer effects.[/JUSTIFY] [/QUOTE]

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