Hong Kong Inflation Rate Slows to 3.9% in May

In May of 2013, Hong Kong annual inflation rate decelerated to 3.9 percent from 4 percent recorded in the previous month, mainly due to slower pace of increase in prices of fresh vegetables.

The increases in prices were recorded for housing (6.1 percent); electricity, gas and water (5.9 percent); meals bought away from home (4.3 percent); food (excluding meals bought away from home) (3.6 percent); miscellaneous services (3.1 percent); miscellaneous goods (2.5 percent); transport (2.3 percent); alcoholic drinks and tobacco (1.6 percent) and clothing and footwear (0.7 percent). On the other hand, durable goods decreased 4.8 percent.

On a seasonally adjusted basis, the average monthly rate of increase in the CPI for the 3-month period from March to May of 2013 was 0.3 percent, and that for the 3-month period from February to April was 0.5 percent. Taking the first five months of 2013 together, the CPI rose by 3.8 percent over a year earlier.

Looking ahead, inflation is expected to face some mild upside risks in the coming months as the lagged effects of the rise in private housing rentals during 2012 continue to feed through. Nonetheless, the subdued imported inflation and the recent milder increase in housing rentals in the market for fresh lettings should help contain inflation in the latter part of this year, according to the government spokesman.

Hong Kong Inflation Rate Slows to 3.9% in May

Census and Statistics Department | Joana Taborda | joana.taborda@tradingeconomics.com
6/20/2013 10:37:40 AM