Hong Kong: Inflation jumps to over five-year high in September
October 21, 2022
Inflation increased to 4.3% in September, following August’s 1.9%. September's result was the highest inflation rate since August 2016. However, inflation is still 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 price pressures.
Annual average inflation rose to 1.9% in September (August: 1.7%).
Finally, consumer prices increased a seasonally adjusted 0.10% in September over the previous month, mirroring August's reading. September's result marked the weakest reading since May.