Hong Kong Inflation Rate Slows to 4.1%

Hong Kong annual inflation rate eased for the fourth straight month to 4.1 percent in January of 2015 from 4.9 percent in the previous month. Although cost of durable goods and clothing and footwear decreased, the difference in timing of the Lunar New Year, which fell in mid-February this year, but in late January last year also accounted for the slowdown.

Year-on-year, decrease in prices were recorded for durable goods (-5.5 percent), clothing and footwear (-1.9 percent) and miscellaneous services (-1.2 percent). Transport cost remained unchanged over a year earlier.

On the other hand, increases in prices were recorded for electricity, gas and water (21.7 percent), mainly because some households had used up the full amount of Government's one-off electricity charge subsidy; housing (8.3 percent), due mainly to dissipation of effect of rates concession since October 2014; alcoholic drinks and tobacco (7.3 percent), mainly due to the increase of tobacco duty; meals bought away from home (4.4 percent); food (excluding meals bought away from home) (2.7 percent) and miscellaneous goods (1.3 percent).

Netting out the effects of all Government's one-off relief measures, annual inflation rate was 2.3 percent, also smaller than that in December 2014 (3.1 percent). The smaller increase in January this year was mainly affected by the higher prices in January last year around the Lunar New Year which led to a higher base of comparison.

Hong Kong Inflation Rate Slows to 4.1%

Census and Statistics Department | Joana Taborda | joana.taborda@tradingeconomics.com
2/23/2015 8:58:41 AM