Hong Kong Inflation Rate Edges Down to 2.3% in August

Inflation rate in Hong Kong declined to 2.3 percent in August of 2018 from 2.4 percent in each of the previous two months. Prices slowed mainly for food, clothing & footwear, transport and utilities. The government expects inflationary pressures to rise in the next months, due to a gradual increase in global inflation and residential rents. However, the inflation rate should remain within a moderate range for 2018 as a whole.

Year-on-year, prices rose less for food (3.5 percent vs 3.6 percent in July); clothing & footwear (1.9 percent vs 2.4 percent); transport (1.4 percent vs 2.2 percent); electricity, gas, water (3.4 percent vs 4.2 percent) and miscellaneous services (1.4 percent vs 1.8 percent). Contrarily, prices picked up for housing (2.3 percent vs 2.2 percent).

On a monthly basis, consumer prices were flat in August, after increasing 0.4 percent in the previous month.

Underlying consumer inflation, which excludes the effects of one-off government relief measures - such as tax cuts for lower income individuals; extra allowance for the elderly, child & disabled people; students' grants; etc. -, edged down to 2.6 percent (from 2.7 percent in July), due to slowing prices for package tours and decreasing transport fares. 

The Government will continue to monitor the situation closely, particularly the impact on the lower-income people.

Hong Kong Inflation Rate Edges Down to 2.3% in August

Census and Statistics Department | Gabriela Costa | gabriela.costa@tradingeconomics.com
9/20/2018 9:32:20 AM