Hong Kong: Inflation accelerates in January
February 22, 2011
In January, consumer prices rose 0.6% over the previous month, up from the 0.5% rise recorded in December. Higher prices for food (+1.5% month-on-month) and housing (+0.6% mom) contributed to the increase. Annual inflation jumped from 3.1% in December to 3.6%, exceeding the 3.3% inflation rate expected by market analysts. As a result, annual average inflation rose from 2.4% in December to 2.6%. A government spokesman confirmed that consumer prices are subject to upward pressures in the near term, due to rising food and commodity prices. In addition, domestic price pressures, such as wages and rents, continue to rise in tandem with the economic recovery.