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.
Author: David Ampudia, Economist