Hong Kong Inflation Rate Steady at 2.4% in July

Inflation rate in Hong Kong came in at 2.4 percent in July of 2018, the same as in the previous month. Prices slowed mainly for food while they continued to rise for housing, miscellaneous services and transport.

Year-on-year, prices rose less for food (3.6 percent vs 3.7 percent in June), including food excluding meals bought away from home (4.8 percent vs 5.2 percent) and meals bought away from home (2.9 percent vs 3.0 percent); and clothing & footwear (2.4 percent vs 3.6 percent). On the other hand, cost increased faster for housing (2.2 percent vs 2.1 percent); miscellaneous services (1.8 percent vs 1.7 percent); transport (2.2 percent vs 2.0 percent) and electricity, gas, water (4.2 percent vs 3.8 percent).

On a monthly basis, consumer prices went up 0.4 percent in July, after increasing 0.3 percent in the previous month.

Underlying consumer inflation, which excludes the effects of one-off government relief measures also remained virtually unchanged at 2.7 percent as compared to June 2018.

A Government spokesman commented that underlying inflation pressure held largely steady in July, with the annual rate of change in the underlying Composite CPI staying unchanged at 2.7%. In view of the edging up of global inflation and continued feed-through of earlier rises in fresh-letting residential rentals, local underlying consumer price inflation in the months ahead may remain somewhat higher than in the first half of 2018, when it averaged 2.4%. Yet, 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 Steady at 2.4% in July

Census and Statistics Department | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
8/21/2018 9:23:11 AM