Hong Kong: Inflation decelerates in October
November 20, 2014
Annual inflation receded from 6.6% in September to 5.2% in October. The reading overshot the 4.0% that markets had expected. According to the Census and Statistics Department, the high reading in September was mainly due to the low base of comparison, which resulted from the government’s one-off payment for public housing rentals in September of last year. There was not such an effect in October. A government spokesman explained that, “underlying inflation held largely stable in the recent period, having eased successively since late 2013. The headline inflation rate was higher than the underlying rate because the Government's rates concession ended in October.”
Consumer prices increased 0.7% over the previous month in seasonally-adjusted terms in October, which followed the 0.5% increase recorded in the previous month and marked the largest increase since December 2013. Meanwhile, annual average variation in consumer prices inched up from 4.2% in September to 4.3% in October.
Author: Carl Kelly, Economist