Hong Kong Inflation Rate Slows to 9-Month Low

In February of 2014, Hong Kong’s inflation rate eased to 3.9 percent, down from 4.6 percent in the previous month. The smaller increase was mainly due to the difference in the timing of the Lunar New Year, which fell in late January and early February this year but in mid-February last year, resulting in smaller increase in prices for package tours and meals bought away from home. Cost of private housing rentals also slowed.

Year-on-year price increases were recorded for electricity, gas and water (5.6 percent); housing (5.5 percent); meals bought away from home (4.2 percent); food (excluding meals bought away from home) (4.1 percent); miscellaneous services (3.5 percent); miscellaneous goods (3.2 percent); transport (2.2 percent); clothing and footwear (1.9 percent) and alcoholic drinks and tobacco (1.5 percent).

In contrast, price decrease was recorded for durable goods (-3.1 percent).

A Government spokesman said that inflation pressure remained largely contained. Taking January and February 2014 together to neutralize the distortions by the timing of the Lunar New Year, the underlying inflation rate averaged 4.0 percent, same as in the fourth quarter of last year. Also, it is worth noting that in February prices of fresh vegetables rose faster amid cold weather, while the rise in private housing rentals continued to moderate.

Hong Kong Inflation Rate Slows to 9-Month Low

Census and Statistics Department | Joana Taborda | joana.taborda@tradingeconomics.com
3/20/2014 9:31:22 AM