Inflation in Hong Kong
Hong Kong - Inflation (end of period)
Inflation sinks lower at outset of the year
Inflation dropped to 1.4% in January from 2.9% in December. When accounting for the effects of one-off government relief measures, inflation was markedly higher at 3.7%, up from December’s 2.9%. The downturn was primarily driven by lower utilities prices, while clothing and footwear, and housing costs also fell. However, food costs remained elevated in January, tempering the overall decline.
For the November–January period, the average month-on-month increase in consumer prices in seasonally-adjusted terms was minus 0.5%, contrasting the 0.1% average increase in the three-month period ending in December.
Looking ahead, inflation should average lower in 2020 than in the previous year as sluggish economic growth and an uptick in unemployment weigh on prices. However, rising food costs, driven by elevated pork prices in the wake of the African swine flu outbreak in China, will continue to provide some offsetting upside price pressures going forward.
FocusEconomics Consensus Forecast panelists expect inflation to average 2.4% in 2020, which is unchanged from the previous month’s forecasts. Moving to 2021, our panel expects inflation to average 2.2%.
Hong Kong - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||4.9||2.3||1.2||1.7||2.6|
5 years of economic forecasts for more than 30 economic indicators.
Hong Kong Inflation (eop) Chart
Source: Census and Statistics Department Hong Kong and FocusEconomics calculations.
Hong Kong Facts
|Bond Yield||1.82||3.38 %||Dec 31|
|Exchange Rate||7.79||-0.11 %||Jan 01|
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February 20, 2020
Inflation dropped to 1.4% in January from 2.9% in December.
February 5, 2020
The IHS Markit Purchasing Managers’ Index (PMI) rose to 46.8 in January (December: 42.1), but remained below the 50-threshold that indicates an improvement in the private sector economy over the previous month.
February 4, 2020
Retail sales by volume declined 21.0% year-on-year in December, although less sharply than November’s revised 25.5% plummet (previously reported: -25.4% year-on-year).
February 3, 2020
A preliminary GDP reading showed the economy contracted at the sharpest pace since Q2 2009 in the final quarter of last year, as mass protests battered domestic demand while the U.S.-China trade war and its own political rift with the mainland weighed on the external sector.
January 21, 2020
Inflation ticked down to 2.9% in December from 3.0% in November.