Hong Kong: Inflation accelerates in December
January 20, 2011
In December, consumer prices rose 0.5% over the previous month, which was up a notch from the 0.4% rise recorded in November. The increase was the result of higher prices for food (+0.8% month-on-month) and housing (+0.5% mom). Annual inflation rose from 2.9% in November to 3.1%, slightly exceeding market expectations, which had seen inflation at 3.0%. As a result, annual average inflation rose from 2.2% in November to 2.4%. A government spokesman confirmed that consumer prices are subject to upward pressures in the near term, due to the pick-up in import prices. In addition, domestic price pressures, such as wages and rents, continue to rise in tandem with the economic recovery.