Hong Kong: Inflation unchanged in July
August 20, 2019
Inflation was stable at June’s 3.3% in July. When accounting for the effects of one-off government relief measures, inflation in July was also unchanged at June’s 3.2%. The print was primarily driven by higher prices for food and housing.
For the May-July period, the average of the month-on-month variation in consumer prices was 0.3% in seasonally-adjusted terms, down from 0.5% in the three-month period ending in June.
Commenting on the inflation outlook, a government spokesperson noted: “price pressures should remain largely contained in the near term amid the earlier easing in fresh-letting residential rentals, modest global inflation and subdued local economic conditions. Yet, the inflation rate in the next few months will hinge on the supply situation and thus prices of fresh pork.”
Author: Steven Burke, Economist