Hong Kong - Inflation
Inflation jumps to highest point in six months in July
Annual inflation jumped from 3.6% in June to 4.0% in July, which represented the highest rate since January. The print overshot the 3.5% market analysts had expected. According to the Census and Statistics Department, the result was mainly driven by higher price increases in the electricity, gas and water category given that, “some households used up the full amount of the Government’s one-off electricity charge subsidy.”
In July, consumer prices rose 0.4% over the previous month in seasonally-adjusted terms, which was above the 0.2% increase recorded in the previous month. Despite the faster year-on-year increase, annual average inflation inched down from 4.3% in June to 4.1% in July.
A government spokesman stated that, “underlying inflation continued an easing trend,” mainly due to, “slower increases in private housing rentals and the modest rises in import prices.” In addition, the spokesman noted that, “looking ahead, underlying inflation should remain contained for the rest of the year, given the generally modest price pressures both locally and externally.”
The government expects inflation to reach 4.4% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 3.8% in 2014, which is down 0.1 percentage points from last month’s forecast. For 2015, the panel expects annual average inflation to moderate to 3.4%.
Hong Kong - Inflation Data
|Inflation Rate (CPI, annual variation in %)||0.6||2.3||5.3||4.1||4.3|
5 years of economic forecasts for more than 30 economic indicators.
Hong Kong Inflation Chart
Source: Census and Statistics Department Hong Kong and FocusEconomics calculations.
Hong Kong Facts
|Bond Yield||1.9||-1.14 %||Sep 01|
|Exchange Rate||7.75||0.0 %||Sep 01|
|Stock Market||24,742||0.0 %||Sep 01|
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August 28, 2014
In July, retail sales fell 4.5% over the same month last year, which followed the 7.5% drop tallied in June.
August 21, 2014
Annual inflation jumped from 3.6% in June to 4.0% in July, which represented the highest rate since January.
August 15, 2014
In the second quarter, the economy expanded 1.8% over the same quarter last year.
August 5, 2014
The HSBC Purchasing Managers’ Index (PMI) increased from 50.1 in June to 50.4 in July.
July 31, 2014
In June, retail sales fell 7.5% over the same month last year, which followed the revised 4.6% drop tallied in May (previously reported: -4.7% year-on-year).