Hong Kong: Inflation keeps declining at the outset of 2019
February 22, 2019
Inflation ticked down from 2.5% in December to 2.4% in January. When accounting for the effects of one-off government relief measures, inflation reached 3.0% in January, up from December’s 2.9% print. The figure mostly reflected an increase in the prices of private housing rentals and meals bought away from home. Meanwhile, annual average inflation ticked up from 2.4% in December to 2.5% in January.
For the November–January period, the average of the month-on-month variations in consumer prices was 0.1% in seasonally-adjusted terms, down from 0.2% in the three-month period from October to December 2018.
Regarding the inflation outlook, agovernment spokesperson noted that:
“In the near term, the upside risks to inflation should remain contained. The recent moderation in fresh-letting residential rentals could have a mitigating effect in the months ahead. The moderating global economic growth and the earlier strengthening of the US dollar vis-à-vis other major currencies should help keep external price pressures in check”.
Author: Joffrey Simonet, Economist