Hong Kong: Inflation slows to four-month low in December
January 22, 2015
Annual inflation inched down from 5.1% in November to 4.9% in December. The reading remained above the 4.7% that markets had expected. According to the Census and Statistics Department, December’s result was driven by higher prices for electricity, gas and water as well as for housing. A government spokesman explained that, “inflation eased further in December, mainly reflecting the benign global inflation, with slower year-on-year increases in food prices and enlarged declines in the prices of clothing and footwear, durable goods as well as motor fuel.”
Consumer prices increased 0.5% over the previous month in seasonally-adjusted terms in December, which followed the 1.6% increase recorded in the previous month. Meanwhile, in the full year 2014, inflation rose to 4.4% from 4.3% in 2013 and represented the highest reading in three years.
Author: Carl Kelly, Economist