Hong Kong: Inflation eases in September
Consumer prices fell a seasonally-adjusted 0.70% in September over the previous month, after falling 0.10% in August. Looking at the details of the release, prices for housing fell at a steep pace in September, while prices for transportation and alcoholic beverages also decreased relative to August.
Inflation came in at 1.4% in September, down from August’s 1.6%. Meanwhile, the trend pointed up, with annual average inflation coming in at 0.9% in September (August: 0.6%).
Commenting on the inflation outlook for next year, analysts at the EIU noted:
“Consumer price inflation will pick up to 2.1% in annual average terms in 2022, from 1.6% in 2021, as steep global commodity price increases from the year before feed through into retail prices. There will be only modest inflationary pressure from other sources. In particular, private residential rents (accounting for nearly a third of the index) will stagnate at best in annual average terms, following a period of outright deflation in 2021.”