Hong Kong Inflation Rate Picks Up to 2.1% in May

Inflation Rate in Hong Kong went up to 2.1 percent in May of 2018 from 1.9 percent in April, mainly due to higher prices for package tours and private housing rentals. Netting out the effects of all Government's one-off relief measures - such as tax cuts for lower income individuals; extra allowance for the elderly, child & disabled people; students' grants; etc. -, the inflation was 2.4 percent, also higher than 2.2 percent in April.

Year-on-year, prices advanced faster for housing (2 percent from 1.8 percent in April); food (4.7 percent from 3.5 percent); transport (1.2 percent from 0.5 percent) and clothing & footwear (1.4 percent from 0.9 percent). Also, inflation was steady for alcoholic beverages & tobacco (0.2 percent) and prices fell at the same pace as in April for educational services (-3.8 percent). Contrarily, cost slowed for electricity, gas & water supply (3.4 percent from 3.7 percent).

On a seasonally adjusted basis, consumer prices were unchanged, following a 0.1 percent drop in the previous month.

A Government spokesman said that, although consumer price inflation remained moderate in May, inflationary pressure will likely go up in the period ahead, in view of the robust economic conditions and continued feed-through of earlier rises in fresh-letting residential rentals. Nevertheless, inflation should stay within a moderate range for the year as a whole. The Government will continue to monitor the situation closely, particularly the impact on the lower-income people.

Hong Kong Inflation Rate Picks Up to 2.1% in May

Census and Statistics Department | Gabriela Costa | gabriela.costa@tradingeconomics.com
6/21/2018 9:21:46 AM