Hong Kong: Inflation remains steady in August
Inflation held steady at July’s 1.9% in August. August’s figure marked the joint-weakest inflation rate since May. The reading was extremely low in the international context. The country’s U.S. dollar peg, which has seen the trade-weighted exchange rate rise around 9% this year on a stronger USD, is one factor at play. Government subsidies, muted demand, and lower rent prices amid emigration are also weighing on price pressures.
Annual average inflation was unchanged at July’s 1.7% in August. Finally, consumer prices rose a seasonally-adjusted 0.10% in August over the previous month, stable from July’s reading.