Hong Kong: Inflation rises to 32-month high
May 23, 2011
In April, consumer prices rose 0.7% over the previous month, above the 0.3% rise recorded in March. The increase was driven by higher prices for clothing and footwear as well as for transport. As a result of the pronounced monthly price increase, annual inflation rose from 4.4% in March to 4.6% in April, which was in line with market analyst expectations and marked the fastest pace since August 2008. In addition, annual average inflation rose from 2.7% in March to 2.9%. A government spokesman confirmed that consumer prices are subject to upward pressures in the near term, due to rising food prices and private residential rentals. On May 13, the government raised its inflation forecast for this year to 5.4% from its previous 4.5% estimate.