Hong Kong: Annual inflation accelerates in September
October 22, 2014
Annual inflation jumped from 3.9% in August to 6.6% in September. September’s reading overshot the 6.2% that markets had expected and marked the highest increase in 14 months. According to the Census and Statistics Department, the reading was mainly due to the low base of comparison, which resulted from the government’s one-off payment for public housing rentals in September of last year. According to a government spokesman, “excluding the effect of the government's one-off relief measures, underlying inflation went up only marginally in September, on account of the upward adjustment in public housing rentals. Prices of basic foodstuffs and private housing rentals actually showed slower increases, while price increases for most other components remained moderate.”
Consumer prices increased 0.5% over the previous month in seasonally-adjusted terms in September, which contrasted the 0.4% decrease recorded in the previous month and marked the largest increase since December 2013. As a result of the acceleration in annual inflation, annual average variation in consumer prices inched up from 4.1% in August to 4.2% in September.
Author: Cecilia Simkievich, Economist