Hong Kong: Inflation falls significantly in April
May 21, 2015
Inflation decreased from 4.5% in March to 2.8% in April. This marks the lowest level of inflation since July 2012 and largely undershot the 4.3% that markets had anticipated. According to the Census and Statistics Department, April’s result was mainly affected by the government relief measure for property taxes rates for April to September 2015. The decrease was also due to a faster fall in the prices of fresh vegetables and a slower increase of fresh fruits prices. A government spokesman explained that, “inflationary pressures eased further, with the year-on-year increase in the underlying Composite CPI tapering from 2.8% in March to 2.4% in April, mainly reflecting the smaller price increase of basic foodstuffs.”
Consumer prices decreased 0.2% in April over the previous month in seasonally-adjusted terms, contrasting the 0.2% increase tallied in March. Meanwhile, annual average variation in consumer prices inched down from 4.5% in March to 4.4% in April.
Author: Eric Denis , Economist