Hong Kong: Inflation inches down in August
September 20, 2018
Inflation fell slightly from July’s 2.4% to 2.3% in August. When accounting for the effects of one-off government relief measures, inflation reached 2.6% (July: 2.7%). The print mostly reflected “smaller increase in the charges for package tours and the decrease in inbound and outbound transport fares, which slightly outweighed the faster increase in the private housing rent component”.
For the June–August period, the average of the month-on-month variations in consumer prices was 0.2% in seasonally-adjusted terms, matching the result in the three months up to July. Meanwhile, annual average inflation inched up from 2.0% in July to 2.1% in August.
A government spokesperson noted that:
“Looking ahead, inflationary pressure is expected to increase modestly in the coming months, alongside the gradual rise in global inflation and continued feed-through of earlier rises in fresh-letting residential rentals. Yet, the inflation rate should stay within a moderate range for 2018 as a whole.”
Hong Kong Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to average 2.3% in 2018, which is up 0.1 percentage points from last month’s forecast. The panel also expects inflation to average 2.3% in 2019, which is unchanged from last month’s projection.