Hong Kong Inflation Rate Edges Up in May

Hong Kong annual inflation rate increased to 3 percent in May of 2015 from a 2.8 percent growth in the previous month, as cost of utilities and housing rose the most.

Year-on-year increases in prices were recorded for: electricity, gas and water (+21.9 percent); housing (+4.2 percent); meals bought away from home (+4.2 percent); food (excluding meals bought away from home) (+2.8 percent); miscellaneous services (+1.8 percent); miscellaneous goods (+1.4 percent); as well as alcoholic drinks and tobacco (+0.2 percent). In contrast, downward pressure came from: durable goods prices (-5.8 percent); and clothing and footwear cost (-3.5 percent). As for transport, the Composite CPI remained unchanged.

Netting out the effects of all Government's one-off relief measures, the inflation rate was 2.6 percent, compared to 2.4 percent in the previous month, mainly due to increases in the prices of fresh vegetables.

On a monthly basis, the composite consumer price index grew by 0.2 percent, from a 1 percent decline in the previous month.

Looking ahead, given the mild imported inflation and modest growth pace of the local economy, the upside risks to inflation should be limited in the near term, a Government spokesman commented.

Hong Kong Inflation Rate Edges Up in May

Census and Statistics Department | Joana Ferreira | joana.ferreira@tradingeconomics.com
6/22/2015 10:10:00 AM