Hong Kong Inflation Rate Rises To 1.3% In January

Consumer prices in Hong Kong went up by 1.3 percent year-on-year in January 2017, compared to a 1.2 percent rise in the previous month. It is the highest rate inflation since September 2016, mainly due to rising transport cost, namely package tours as the Lunar New Year fell in late January this year but in early February last year. This largely offset a fall in electricity charges and lower food inflation.

Year-on-year, prices increased at a faster pace for transport (2.4 percent from 2 percent) and miscellaneous goods (3.6 percent from 2.3 percent). Housing rose 0.3 percent (the same as in December) and food went up at a slower pace (2.8 percent from 3.1 percent).

By contrast, cost fell for electricity, gas and water (-7.6 percent from -0.3 percent in December), clothing and footwear ( -2.9 percent from -0.3 percent), and durable goods (-3.9 percent from -5.2 percent).

Meanwhile, underlying consumer prices, which exclude the effects of one-off government relief measures went up 2.1 percent compared to 2 percent in December mainly due to higher charges for package tours around Lunar New Year.

Inflationary pressures are expected be contained in the near term given the soft import prices and moderate local cost increases, a government spokesman commented.

Hong Kong Inflation Rate Rises To 1.3% In January

Census and Statistics Department | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
2/21/2017 12:12:47 PM