Hong Kong August Inflation Rate Rises to 3-Year High

The annual inflation rate in Hong Kong rose to 3.5 percent in August 2019 from 3.3 percent in the previous month. It was the highest inflation rate since August 2016, mainly boosted by food and transport prices.
Census and Statistics Department | Stefanie Moya | stefanie.moya@tradingeconomics.com 9/20/2019 8:49:28 AM
Year-on-year, prices advanced further for food (6.3 percent from 5.9 percent in July), driven by food, excluding meals bought away from home (14.2 percent from 12.8 percent); and transport (2.9 percent from 1.9 percent). In addition, cost dropped less for electricity, gas and water (-5.2 percent from -5.9 percent); and clothing and footwear (-0.6 percent from -2.0 percent). On the other hand, prices slowed for housing (3.9 percent from 4.0 percent); miscellaneous goods (1.3 percent from 2.7 percent); miscellaneous services (1.3 percent from 1.4 percent); and alcoholic drinks and tobacco (a flat reading from 2.4 percent). Also, cost of durable goods declined at a faster pace (-1.5 percent from -1.2 percent).

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 went up to 4.1 percent from 3.9 percent in July.

"Looking ahead, modest global inflation and sluggish local economic growth should continue to help contain overall inflation.  Yet, food inflation will probably stay elevated in the near term due to high prices of fresh pork. The Government will continue to monitor the inflation situation closely, particularly the impact on the lower-income people.", a government spokesman said.

Hong Kong August Inflation Rate Rises to 3-Year High