Hong Kong: Inflation inches down in July
August 22, 2016
Inflation came in at 2.3% in July, which was slightly below June’s 2.4%. The reading mainly reflected a decline in prices for durable goods and clothing and footwear. A government spokesman suggested that, looking ahead, “underlying inflation will likely stay modest in the near term, given the subdued global inflation, continued feed-through of the earlier softening in fresh-letting residential rentals and tame local cost pressure.”
For the three-month period from May to July, the average of the month-on-month variations in consumer prices was flat in seasonally-adjusted terms, which was above the 0.3% decrease tallied in the three months up to June. Meanwhile, annual average inflation came in at 2.6% in July for the fifth month in a row, marking the lowest readings since February 2011.
Author: David Ampudia, Economist