Hong Kong Inflation Rate at 4-Month High in December

The consumer price index in Hong Kong increased 1.7 percent year-on-year in December of 2017, following a 1.6 percent increase in the prior month. It was the highest inflation rate since August last year. Prices advanced faster for food while grew at the same pace for housing and transport. A Government spokesman said that inflation pressure should remain moderate in the near term, considering the still-modest global inflation and steady rises in local costs. Nevertheless, going further ahead, it may increase somewhat if the global economic upturn continues and the local economy sustains notable growth.

Year-on-year, cost rose faster for food (2.4 percent vs 2.3 percent in November), namely food excluding meals bought away from home (2.8 percent vs 2.6 percent) and food excluding meals away from home (1.8 percent vs 1.6 percent). Also, prices were higher for miscellaneous goods (1.3 percent vs 0.8 percent) and clothing and footwear (1.4 percent vs 0.9 percent). Meantime, cost of durable goods fell less (-1.4 percent vs -2.5 percent).

On the other hand, inflation remained steady for housing (2.5 percent); transport (1.7 percent) and miscellaneous services (0.1 percent). 

On a monthly basis, consumer prices went up 0.4 percent, above 0.3 percent in the previous month.

Underlying consumer inflation, which excludes the effects of one-off government relief measures was also 1.7 percent, slightly higher than 1.6 percent in November, mainly due to the smaller decreases in the prices of fresh vegetables. Also relevant were increases in the costs for meals bought away from home.

Hong Kong Inflation Rate at 4-Month High in December

Census and Statistics Department | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
1/23/2018 9:20:07 AM