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Interestingly, although pork production peaked in December, consumer demand plummeted by about 2% due to cautious spending habits. Retail reports indicated a staggering 30% year-on-year decline during the critical Lunar New Year season. The government had to step in on multiple occasions to stabilize the pork market, creating a strategic reserve to manage prices.
The CCP's Pervasive Concerns
The persistence of deflation introduces a series of risks, notably the potential for a self-perpetuating cycle where falling prices lead consumers to delay purchases, perpetuating the decline in demand. This situation is especially troubling for an indebted country like China, where deflation increases the real burden of debt.