Hong Kong: Inflation jumps to highest point in six months in July
August 21, 2014
Annual inflation jumped from 3.6% in June to 4.0% in July, which represented the highest rate since January. The print overshot the 3.5% market analysts had expected. According to the Census and Statistics Department, the result was mainly driven by higher price increases in the electricity, gas and water category given that, “some households used up the full amount of the Government’s one-off electricity charge subsidy.”
In July, consumer prices rose 0.4% over the previous month in seasonally-adjusted terms, which was above the 0.2% increase recorded in the previous month. Despite the faster year-on-year increase, annual average inflation inched down from 4.3% in June to 4.1% in July.
A government spokesman stated that, “underlying inflation continued an easing trend,” mainly due to, “slower increases in private housing rentals and the modest rises in import prices.” In addition, the spokesman noted that, “looking ahead, underlying inflation should remain contained for the rest of the year, given the generally modest price pressures both locally and externally.”