Hong Kong Inflation Rate at 3-Month High

Inflation Rate in Hong Kong went up to 2.4 percent in June of 2018 from a 2.1 percent gain in May. It was the highest inflation since March, mainly due to higher prices for private housing rentals, salt-water fish and package tours. 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 2.7 percent, also higher than 2.4 percent in May.

Year-on-year, prices advanced faster for housing (2.1 percent from 2 percent in May); food (5.2 percent from 4.7 percent); transport (2 percent from 1.2 percent); clothing & footwear (3.6 percent from 1.4 percent); electricity, gas & water supply (3.8 percent from 3.4 percent) and alcoholic beverages & tobacco (1.4 percent from 0.2 percent) and fell slightly less for educational services (-3.7 percent from -3.8 percent).

On a seasonally adjusted monthly basis, consumer prices edged up 0.3 percent in June, after being unchanged in the previous month.

A Government spokesman commented further that, looking forward, inflationary pressure is expected to intensify slightly in the near term compared to the situation in the first half of the year, reflecting higher global inflation and continued feed-through of earlier rises in fresh-letting residential rentals. Nonetheless, inflation should stay within a moderate range for 2018 as a whole. The Government will continue to monitor the situation closely, particularly the impact on the lower-income people.

Hong Kong Inflation Rate at 3-Month High

Census and Statistics Department | Gabriela Costa | gabriela.costa@tradingeconomics.com
7/23/2018 9:25:58 AM