Hong Kong: Inflation rises in March
March 31, 2017
Inflation returned in March, coming in at 0.5% (February -0.1%). The upswing was due to an increase in food prices. Meanwhile, transport and housing prices rose at the same pace as in February.
A government spokesperson suggested that, looking ahead, “inflation pressure should remain contained in the near term.” Ongoing normalization of U.S. interest rates is likely to add further downward pressure to consumer prices, particularly housing and rents, as an expected capital flight corrects Hong Kong’s residential property prices.
For the three-month period from January to March, the average of the month-on-month variations in consumer prices was zero in seasonally-adjusted terms, and came in slightly above the 0.1% average decline seen in the three months up to February. Meanwhile, annual average inflation was 1.8% in March, coming in below February’s 2.0% reading.
Author: Christopher Thomas, Economist