Hong Kong: Inflation hits a five-month low in June
July 21, 2016
Inflation was 2.4% in June, coming in below May’s 2.6% on the back of a decline in prices for food and private housing rentals. A government spokesman suggested that, looking ahead, “upside risks to inflation should remain contained in the near term, given the soft import prices and the continued feed-through of the earlier softening in local fresh-letting residential rentals. The subpar economic conditions should also keep local cost increases in check.”
For the three-month period from April to June 2016, the variation in consumer prices declined by an average of 0.3% month-on-month in seasonally-adjusted terms, which was virtually unchanged from the 0.4% drop tallied in the three months up to May. Meanwhile, annual average inflation tallied 2.6% in June, which mirrored May’s result and is the lowest reading since February 2011.
Author: Luis Lopez Vivas, Economist