China’s heat wave could lead to power shortages and higher prices for pork.

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Numerous cities are experiencing record-breaking temperatures at a moment when the economy is still recoveringCovid-related lockdowns: From bruising. This heatwave is also caused by consumer inflation reaching a 23-month peak, mainly due to rising food prices.

As many as 84 cities across the country on Wednesday issued their highest-level red alert warnings — which means temperatures are expected to reach over 40 degrees Celsius (104 Fahrenheit) in the coming 24 hours — according to the National Meteorological Administration. Shanghai reported temperatures of 40 degrees Celsius on Sunday, for the first year in a row.

China’s Heat wave has driven electricity demand to extreme levels across many regions. People turn up their air conditioners.

On Tuesday, Zhejiang province — a major export and manufacturing powerhouse on the east coast — urged its 65 million residents Businesses and individuals can save energy.

“To ensure electricity supply to residents and businesses… we call for the collective actions of the whole society to save electricity,” said the provincial energy bureau and State Grid in a joint statement.

Analysts from Chinese brokerage firms claim that Zhejiang’s Energy Bureau has also restricted power supply to some energy-intensive companies, such as those involved in polyester production and textile printing and dying.

This is just months after China was founded. A energy crisisThat was the cause widespread Power outagesIn the second half last year. The blackouts could be attributed toManufacture shortagesChina produces its coal from this type of coal About 60%Its electricity is a surge in power demand.
China’s vast manufacturing industry is facing another challenge due to the heatwave, and consequent power-rationing. Recovery fromMonths of Covid lockdowns.
China releases GDP data for April-June quarter. The country is expected to report a slumping economy. In the second quarter, it was around 1% 4.8% in the first three-months of the year

Inflation worries

China’s high temperatures are also threatening China’s crop production and could lead to food inflation.

The Central Meteorological Observatory warns that high temperatures could impact the production and use of soybeans, wheat and other pastures in many northern regions, including Ningxia and Inner Mongolia.

Residents spend their time in an air-raid shelter to escape summer heat amid a heatwave warning in Nanjing, Jiangsu province, China July 12, 2022.
Both domestic and international food prices are rising Global marketsRecent weeks have seen a shift in the feed industry and pig breeding.

Numerous feed producers including New Hope Group had warned their clients earlier in the month that they would increase prices for poultry, pork, and fish feeds as a result of the rising cost of soybean meal and wheat. The majority of the price increases occurred last week.

Pork is the staple meat of China and has been inundated by soybeans and corn, two main ingredients in the pig industry.

Prices for hogs rose 46% in the week to July 1, according to the latest data. According to the most recent data of the National Development and Reform Commission which is the country’s top economist, March was the highest month.

The commission It was looking at tapping the country’s resources last week Strategic pork reservesTo limit the rapid rise in prices. It also pledged that it would clamp down on any price-gouging behavior by pork farms.
China’s most recent CPI data indicates that The consumer price index grew 2.5% compared to a year earlier. This is an increase of 2.1% from May, and the highest in almost two decades. The upward pressure was exacerbated by the nearly 3% increase in pork prices from May to June, according to the national bureau for statistics.A statement.

— CNN’s Jessie Yeung and Shawn Deng contributed to the reporting.

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