Hong Kong Inflation Rate Slows in June

The annual inflation rate in Hong Kong edged down to 3.6 percent in June of 2014, the lowest rate in nearly one year and a half, due to a moderated rise in cost of private housing rentals.

Year-on-year inflation slowed for housing (4.8 percent in June of 2014 from 5.0 percent in May), electricity, gas and water (2.4 percent from 3.4 percent), alcoholic drinks and tobacco (7.8 percent from 8.1 percent), clothing and footwear (2.0 percent from 2.9 percent) and miscellaneous services (3.0 percent from 3.1 percent). In contrast, annual prices accelerated for transport in June of 2014 (2.4 percent from 2.1 percent in May) and remained unchanged for food (4.2 percent). 

Netting out the effects of all Government's one-off relief measures, the year-on-year inflation rate was 3.4 percent in June of 2014.

On a monthly basis, consumer prices accelerated 0.2 percent in June of 2014, the same rate recorded in the previous two months.

A Government spokesman commented that, looking ahead, the upside risks to inflation should remain limited in the near term, as the slower private rental increases in recent periods will continue to feed through to consumer prices and as external price pressures are likely to remain contained.

Hong Kong Inflation Rate Slows in June

Census and Statistics Department | Isabel Felino | isabel.felino@tradingeconomics.com
7/21/2014 10:50:58 AM