Hong Kong: Inflation quickens in June
July 22, 2013
Annual inflation rose to 4.1% in June, which was slightly above the 3.9% recorded in May. The result was in line with market expectations. According to the Census and Statistics Department, the acceleration reflects higher prices for housing and food, as well as for energy and water. That said, annual average inflation dropped to the lowest level in two years, having inched down from 3.7% in May to 3.6% in June.
A government spokesman stated that inflation is likely to increase in the coming months as a result of the effects of the 2012's increase in private housing rentals that continue to feed consumer prices. The spokesman added that inflationary pressures should remain at bay in the second half of this year amid subdued imported inflation and the recent mild increase in housing rentals.
The government expects inflation to average 4.5% this year. FocusEconomics Consensus Forecast panellists expect inflation to average 4.0% in 2013, which is up 0.1 percentage points from last month's forecast. For 2014, the panel expects annual average inflation to moderate to 3.7%.