Hong Kong Inflation Slows to 2.7% in September


Consumer prices in Hong Kong increased 2.7 percent year-on-year in September of 2016, following 4.3 percent rise in the previous month. The larger growth in August 2016 was attributable to the low base of comparison arising from the Government's payment of public housing rentals a year ago, and such effect did not come into play in September. Netting out the effects of all Government's one-off relief measures, the inflation rate was 2.3 percent, slightly larger than 2 percent in August.

Year-on-year, prices increased at a slower pace for housing (+4.2 percent compared to +9.5 percent in August);  meals bought away from home (+2.9 percent from +3 percent in August); food excluding meals bought away from home (+2.2 percent compared to +2.3 percent in August); miscellaneous goods (+2.2 percent compared to +2.5 percent in August); miscellaneous services (+2.1 percent compared to +2.7 percent in August) and transport (+1.7 percent compared to +2 percent in August).

In contrast, electricity, gas and water went up at a faster 10.3 percent(+4.2 percent in August), mainly due to the low base of comparison resulted from the special fuel rebate in electricity starting from mid-August last year.

Also, prices fell for durable goods (-5.4 percent, compared to -5.3 percent in August) and clothing and footwear (-3.6 percent compared to -5 percent in August).
Considering the first nine months of 2016, the CPI rose by 2.8 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 subdued global inflation as well as moderate local cost pressures.

Hong Kong Inflation Slows to 2.7% in September


Census and Statistics Department | Yekaterina Guchshina | yekaterina@tradingeconomics.com
10/20/2016 9:08:34 AM