Since 2020, all parts of the world are facing inflation risks. Inflation in Europe and the United States has been rising, while China's CPI has been at a low level, even less than 2%. This is something that China has always been proud of, but it is not entirely good to study it carefully.
Generally speaking, rising raw material prices will drive up the prices of industrial products, and rising energy prices will increase the transportation and cherry sales costs, thus raising the prices of commodities in an all-round way. However, China's PPI has been following the international market, but CPI has not. From the historical data, the scissors difference between CPI and PPI has reached a historical high.
1) Pork: Although in the short term, this round of pork price increase may only be affected by the recovery of raw material prices and demand, and it is difficult to last. However, there are still opportunities to do defensive plates in the short term;
2) necessities of life: necessities of life may usher in price increases, and it may be time for brand enterprises whose profits have declined due to the increase in raw material prices in the early stage to raise prices.
3) Seed industry: With the increase of food prices, the next stage is to expand production. Seed quality is very important, and seed industry leaders may benefit.