Hong Kong: Inflation continues to rise on higher food and rental prices
July 21, 2011
In June, consumer prices rose 0.5% over the previous month, unchanged from the 0.5% rise recorded in May. The increase was driven by higher prices for food as well as for housing, which were pushed up on the back of higher private rental prices. The monthly price increase drove annual inflation up from 5.2% in May to 5.6% in June, which matched market analyst expectations and marked the fastest pace since July 2008. Annual average inflation rose from 3.1% in May to 3.3%. A government spokesman confirmed that consumer prices will be subject to upward pressures in the coming months, due to both external and domestic factors including high global food and commodity prices. The government expects inflation to reach 5.4% this year.