Hong Kong: Inflation moderates in June
July 23, 2012
Annual inflation fell from 4.3% in May to 3.7% in June, the lowest level seen since February 2011 and below market expectations of a 3.8% rate. According to the statistical institute, higher prices for food and housing where partially offset by a plunge in electricity, gas and water prices, largely due to the government's electricity charge subsidy. Annual average inflation followed suit and eased from 5.5% in May to 5.4%, the lowest level recorded so far this year. A government spokesman stated that inflation is likely to recede further in the coming months, given the difficult external economic environment and the deceleration of import prices. The government expects headline inflation to moderate to 3.5% this year.