Since 2020, the world has been caught in the risk of inflation, and inflation in Europe and the United States has continued to rise, 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 after careful study, it is not entirely a good thing.
Generally speaking, rising raw material prices will lead to rising industrial prices, and energy prices will increase transportation costs, thus raising commodity prices 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 decreased due to rising raw material prices in the early stage to raise prices.
3) Seed industry: With the increase of grain price, the next stage is to expand production. Seed quality is very important, and seed industry leaders may benefit.