Hong Kong: Inflation quickens in January
February 20, 2012
In January, consumer prices rose 0.9% over the previous month, which was above the 0.6% increase recorded in December. According to the statistical institute, food prices and housing rentals were the main drivers behind the monthly increase. Annual inflation rose to 6.1% in January from 5.7% in December, which overshot market expectations of 5.8%. The reading was influenced by the Lunar New Year celebration, which boosted consumption during the month. Moreover, annual average inflation edged up from 5.3% in December to 5.5% in January. Despite the monthly rise, a government spokesman stated that ?with the recent retreat of global food and commodity prices as well as slower local economic growth, inflation should gradually come down over the course of 2012?. The government expects headline inflation to moderate to 3.5% this year.