Hong Kong Consumer Prices Fall For 1st Time In 7-1/2 Years


Consumer prices in Hong Kong fell by 0.1 percent year-on-year in February 2017, compared to a 1.3 percent rise in the previous month. It is the first decrease since August of 2009 due to several factors: difference in the timing of the Lunar New Year, which fell in late January this year but in early February last year; high base of comparison a year earlier when prices of basic foodstuffs surged because of bad weather conditions and downward adjustment in electricity charges. Taking the first two months of 2017 together to neutralise the effect of the Lunar New Year, consumer prices rose by 0.6 percent over a year earlier.

Year-on-year, decreases in prices were recorded for electricity, gas and water (-7.5 percent vs -7.6 percent in January); food (excluding meals bought away from home) (-3.7 percent vs 2.3 percent); durable goods (-3.7 percent vs -3.9 percent); clothing and footwear (-3.3 percent vs -2.9 percent) and miscellaneous services (-1.1 percent vs 3.6 percent). In contrast, increases were seen for transport (3.1 percent vs 2.4 percent), meals bought away from home (2.8 percent vs 3.1 percent), alcoholic drinks and tobacco (2.7 percent vs 1.6 percent) and miscellaneous goods (2.5 percent vs 2.4 percent).

Underlying consumer prices, which exclude the effects of one-off government relief measures went up 0.7 percent compared to 2.1 percent in January as the difference in the timing of the Lunar New Year resulted in lower charges for package tours. Another downward pressure came from falling prices of fresh vegetables.

Hong Kong Consumer Prices Fall For 1st Time In 7-1/2 Years


Census and Statistics Department | Joana Taborda | joana.taborda@tradingeconomics.com
3/21/2017 2:09:40 PM