Hong Kong Inflation

Hong Kong

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.”

The government expects inflation to reach 4.4% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 3.8% in 2014, which is down 0.1 percentage points from last month’s forecast. For 2015, the panel expects annual average inflation to moderate to 3.4%.


Author: Ricard Torné, Lead Economist

Sample Report

Looking for forecasts related to Inflation in Hong Kong? Download a sample report now.

Download

Hong Kong Inflation Chart


Hong Kong Inflation July 2014

Note: Year-on-year and annual average variation of consumer price index in %.
Source: Census and Statistics Department Hong Kong and FocusEconomics Consensus Forecast.


Hong Kong Economic News

More news

Search form