Hong Kong: Inflation climbs in April
May 23, 2017
Inflation rose in April, coming in at 2.0% (March: 0.5%). April’s increase was due to rising food and transport prices. Housing prices, especially public housing rents, also sharply increased.
A government spokesperson suggested that, looking ahead, “inflation should remain contained in the near term, considering the low imported inflation as well as moderate local cost pressures.” Ongoing normalization of U.S. interest rates is likely to add downward pressure to consumer prices in the coming months, particularly private housing rents, as an expected capital flight corrects Hong Kong’s residential property prices.
For the three-month period from February to April, the average of the month-on-month variations in consumer prices was 0.2% in seasonally-adjusted terms, which was slightly above the nil average increase seen in the three months up to March. Meanwhile, annual average inflation was unchanged at 1.8% in April from a month earlier.
Author: Christopher Thomas, Economist