Hong Kong: Inflation moderates in October
November 21, 2013
Annual inflation stepped down from 4.6% in September to 4.3% in October. The print undershot market expectations of 4.5% and marked the lowest rate in four months. According to the Census and Statistics Department, the result was mainly driven by higher prices for housing, as well as for electricity, gas and water. Annual average inflation stabilized at the previous month's 4.2%.
A government spokesman stated that, "looking ahead, the subdued imported inflation and the moderated increases in fresh-letting residential rentals since early 2013 should help to contain the upside risks to inflation in the near term."
The government expects inflation to average 4.3% in 2013. FocusEconomics Consensus Forecast panelists expect inflation to average 4.1% in 2013, which is unchanged from last month's forecast. For 2014, the panel expects annual average inflation to moderate to 3.6%, which is also unchanged from last month's estimate.