Hong Kong Inflation December 2019

Hong Kong

Hong Kong: Inflation inches down in December

January 21, 2020

Inflation ticked down to 2.9% in December from 3.0% in November. When accounting for the effects of one-off government relief measures, inflation was stable at November’s 2.9% in December. The headline print was primarily driven by a sharper price decrease for alcoholic drinks and tobacco, and utilities, while transport prices increased at a softer pace in December. That said, food and housing costs remained elevated in the month.

For the October-December period, the average month-on-month increase in consumer prices in seasonally-adjusted terms was 0.1%, which is unchanged from the average increase in the three-month period ending in November.

Looking ahead, inflation should continue to ease as economic activity remains sluggish, although pork prices will remain elevated until the African swine flu outbreak subsides in China, where pork supply has been devastated. Moreover, the fourth quarter’s rise in the unemployment rate and ongoing deteriorations in the manufacturing, retail and tourism sectors should keep price pressures tepid.

FocusEconomics Consensus Forecast panelists expect inflation to average 2.4% in 2020, which is up 0.1 percentage points from the previous month’s forecasts. Moving to 2021, our panel expects inflation to average 2.1%.

Author:, Economist

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Hong Kong Inflation Chart

Hong Kong Inflation December 2019 0

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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