Hong Kong: Inflation bounces back in August
September 20, 2012
Annual inflation jumped from 1.6% in July, the lowest level seen since July 2010, to 3.7% in August. The reading fell short of market expectations of a 3.9% rate. According to the statistical institute, prices for housing rose notably due to the timing of public housing rentals waivers, which were conducted in July and August this year, but in August and September last year, distorting the annual comparison. Annual average inflation, however, eased from 4.9% in July to 4.7%, the lowest level since September 2011. A government spokesman stated that "given the more difficult economic environment and the more moderate increases in import prices, there should still be some room for inflation to ease further in the near term". The government expects headline inflation to average 3.7% this year.