Hong Kong: Inflation down slightly in November
December 29, 2014
Annual inflation inched down from 5.2% in October to 5.1% in November. The reading remained above the 4.7% that markets had expected. According to the Census and Statistics Department, November’s result was driven by higher prices for electricity, gas and water. A government spokesman explained that, “underlying consumer price inflation held largely stable in November, amid modest imported inflation and mitigated local cost pressures. The headline inflation rate was still higher than the underlying rate, because the Government's rates concession ended in October and some households had used up the full amount of the Government's one-off electricity charge subsidy.”
Consumer prices increased 1.6% over the previous month in seasonally-adjusted terms in November, which followed the 0.7% increase recorded in the previous month and marked the largest increase on record. Meanwhile, annual average variation in consumer prices inched up from 4.3% in October to 4.4% in November.
Author: Carl Kelly, Economist