Hong Kong: Inflation remains steady in July
August 22, 2022
Inflation held steady at June's 1.9% in July. While food price inflation accelerated slightly, transport price pressures eased amid a drop-off in global fuel prices. Moreover, housing costs continued to decline.
July’s inflation reading was extremely 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, muted demand, and lower rent prices amid emigration, are also weighing on price pressures. Annual average inflation ticked down to 1.7% in July (June: 1.8%).