Hong Kong Inflation Rate at 17-Month High in August


Consumer prices in Hong Kong increased 4.3 percent year-on-year in August of 2016, following 2.3 percent rise in July. It was the highest inflation rate since March 2015, due to the low base of comparison resulted from the government's payment of public housing rentals in August last year. Netting out the effects of all Government's one-off relief measures, the inflation was 2.1 percent, also slightly larger than 2 percent in July.

Year-on-year, prices increased at a faster pace for housing (+9.5 percent compared to +4.2 percent in July); electricity, gas and water (+4.2 percent compared to -1.5 percent in July); alcoholic drinks and tobacco (+2.6 percent compared to 2 percent in July); transport (+2 percent compared to 0.6 percent); miscellaneous goods (+2.5 percent compared to 2 percent in July) and food excluding meals bought away from home (+2.3 percent compared to 1.9 percent in July).

Inflation was lower for meals bought away from home (3 percent from +3.3 percent in July) and miscellaneous services (2.7 percent compared to 2.8 percent in July); 

In contrast, prices fell for durable goods (-5.3 percent, the same as in July) and clothing and footwear (-5 percent compared to -4.8 percent in July).

Considering the first eight months of 2016, the CPI rose by 2.9 percent over a year earlier but netting out the effects of all Government's one-off relief measures, it went up at a slower 2.4 percent.

The spokesman commented that looking ahead, inflation pressure should remain contained in the near term, given the soft import prices and moderate increases in local costs. 

Hong Kong Inflation Rate at 17-Month High in August


Yekaterina Guchshina | yekaterina@tradingeconomics.com
9/22/2016 9:09:54 AM