Hong Kong: Inflation is stable in May at muted rate
June 21, 2022
Consumer prices rose a seasonally-adjusted 0.10% in May over the previous month, mirroring April's reading.
Inflation came in at 1.3% in May, matching April’s result. May’s reading is extremely low in the international context. The country’s U.S. dollar peg, which has seen the trade-weighted exchange rate rise this year on a stronger USD, is one factor at play. Government subsidies, and lower rent prices amid emigration, are also weighing on inflation. Meanwhile, the trend was unchanged, with annual average inflation coming in at April's 1.7% in May.