Hong Kong: Inflation rises to highest level in almost three years
June 21, 2011
In May, consumer prices rose 0.5% over the previous month, below the 0.7% rise recorded in April. The increase was driven by higher prices for food as well as for housing, which were pushed up on the back of increased private rental prices. The monthly price increase drove annual inflation up from 4.6% in April to 5.2% in May, which was slightly above market analyst expectations of a 5.1% increase and marked the fastest pace since July 2008. In addition, annual average inflation rose from 2.9% in April to 3.1%. 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.