Hong Kong Inflation Rate Unchanged At 1.2% In December

Consumer prices in Hong Kong increased by 1.2 percent year-on-year in December 2016, the same pace as in the previous month. The inflation rate remained at its lowest level since January 2010, as prices of housing, food and services rose at a slower pace while cost of transport and goods went up further.
Census and Statistics Department | Joana Ferreira | joana.ferreira@tradingeconomics.com 1/23/2017 9:59:51 AM
Year-on-year, prices increased at a slower pace for housing (+0.3 percent compared to +0.4 percent in November), as cost of public housing rent dropped sharply (-5.6 percent, unchanged from November) while that of private housing rent went up slightly (+0.5 percent from +0.6 percent); food (+3.1 percent from +3.2 percent); and miscellaneous services (+2 percent from +2.1 percent). Additional upward pressure came from transport (+2 percent from +1.8 percent in November) and miscellaneous goods (+2.3 percent from +2.2 percent).

By contrast, cost fell for durable goods (-5.2 percent from -5 percent in November); clothing and footwear (-3.6 percent from -3 percent) and electricity, gas and water (-0.3 percent from +0.3 percent).

Meanwhile, underlying consumer prices, which exclude the effects of one-off government relief measures, went up 2 percent, the smallest gain since July last year, mainly due to the smaller increases in the prices of fresh vegetables.

For 2016 as a whole, the consumer price index rose by 2.4 percent over a year earlier. Netting out the effects of all Government's one-off relief measures, it rose by 2.3 percent.

Looking ahead, inflation risks should remain contained in the near term, given the soft import prices and tame local cost pressures, a spokesman commented.

Hong Kong Inflation Rate Unchanged At 1.2% In December