Chinese inflation moderated in August, data showed Wednesday, as a slowdown in the surging price of pork tempered food costs.

The consumer price index (CPI) hit 2.4 percent, in line with forecasts and below the previous month's reading, as pork saw its slowest increase in a year, while analysts said the easing could also be attributed to a high base comparison.

Dong Lijuan at the National Bureau of Statistics, which released the figures, said pork supplies had improved but noted that the cost of other meats also rose, "affected by factors such as rising feed costs, recovery in demand, and rising pork prices".

The price of pork, a staple in China, has been soaring for more than a year after the country's pig herds were ravaged last year by African swine fever, which forced the culling of at least a million animals.

The meat's price rose 52.6 percent on-year in August, a slowdown from the 85.7 percent surge in July and more than 100 percent earlier in 2020.

"The falling CPI inflation was mainly driven by a sharp slump in pork prices on-year, thanks to a high base and rising weight of pork in the CPI basket," Nomura's Lu Ting said.

A national campaign to curb mounting food waste in August sparked speculation that the country's food supply outlook is worse than the government admits -- exacerbated by swine fever, the coronavirus outbreak and this year's heavy flooding which destroyed huge swathes of farmland.

Customs data published earlier this week showed that Chinese meat imports had increased more than 70 percent this year.

The NBS said industrial production continued to improve and prices of commodities such as oil, iron ore and non-ferrous metals grew -- allowing for improvements in the producer price index (PPI).

The PPI, which measures the cost of goods at the factory gate, fell 2.0 percent in August, largely in line with forecasts.

Factory gate prices had previously been dragged by fallout from the coronavirus pandemic, but started rising again in June -- with analysts noting a recovery in industrial demand.

France's Baccarat in trouble as Chinese owner seeks cash
Strasbourg, France (AFP) Sept 8, 2020 - The storied French crystal maker Baccarat has been placed in administration by a court trying to determine if its Chinese owner will be able to raise emergency funds as sales tumble, the company said Tuesday.

Hong Kong-based Fortune Fountain Capital, which bought Baccarat two years ago, was itself placed in liquidation in July as debts piled up, according to a ruling by the Nancy commercial court in eastern France, seen by AFP.

It had pledged to restore Baccarat's lustre by tapping into Asian demand for its hand-crafted sculptures, chandeliers and tableware that have graced posh tables since the reign of Louis XV.

But Fortune's uncertain fate has made bankers reticent to extend funds despite the French government's offer to back loans to companies hit by the coronavirus outbreak which has hammered luxury firms.

Last month, the 256-year-old company posted a 30 percent drop in sales during the first half of the year to 52.2 million euros ($61.4 million), citing "an unprecedented global health crisis".

On Monday, the Nancy court appointed two independent administrators in an "exceptional measure" to see how Baccarat can remain viable.

"The goal is to evaluate whether Baccarat is facing an acute crisis making normal operations impossible and exposing it to imminent collapse," the court said in its ruling.

Eric Rogue, a member of Baccarat's works council, said its factory around 60 kilometres (40 miles) southeast of Nancy was currently operating at just 80 percent capacity after months of total shutdown during the Covid-19 lockdown.

"Employees are worried. We want Baccarat to find a robust shareholder and stability," Rogue said.

The works council wrote to management in July to complain the firm resembled a "rudderless ship" without a captain, alluding to internal disputes among executives at Fortune and its New Anchor Limited subsidiary, charged with running Baccarat.

In the meantime, a shareholders' meeting set for September 17 has been delayed until after the administrators' report, the company said.

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France puts jobs at heart of economy rescue plan
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