Hong Kong Inflation October 2016

Hong Kong

Hong Kong: Inflation drops to over six-year low

November 22, 2016

Inflation came in at 1.2% in October, which was notably below September’s 2.7% and marked the lowest reading since July 2010. Since hitting a 17-month high in August, growth in consumer prices in Hong Kong has decelerated due to the government’s one-off relief measures aimed at reducing renting costs. October’s reading saw a tepid increase in housing prices, while prices for clothing and footwear products as well as durable goods declined in the same month. A government spokesman suggested that, looking ahead, “inflation pressure should remain moderate in the near term, given muted imported inflation and tame local cost pressures.”

For the three-month period from August to October, the average of the month-on-month variations in consumer prices came in at 0.4% in seasonally-adjusted terms, which was above the 0.3% increase recorded in the three months up to September. Meanwhile, annual average inflation was 2.6% in October, which was slightly below September’s 2.7% reading.

FocusEconomics Consensus Forecast panelists expect inflation to average 2.5% in 2016, which is up 0.1 percentage points from last month’s forecast. For 2017, the panel expects inflation of 2.1%, which is up 0.2 percentage points from last month’s estimate.


Author:, Economist

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Hong Kong Inflation Chart


Hong Kong Inflation October 2016

Note: Year-on-year and annual average variation of consumer price index in %.
Source: Census and Statistics Department Hong Kong and FocusEconomics Consensus Forecast.


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