Hong Kong Inflation Rate Slows Slightly

Hong Kong annual inflation rate eased to 3.9 percent in August of 2014 from 4 percent in July due to lower rental cost pressures and a modest rise in import prices.

Amongst the various CPI components, year-on-year increases in prices were recorded in August 2014 for electricity, gas and water (24.3 percent), mainly because some households had used up the full amount of Government's one-off electricity charge subsidy); alcoholic drinks and tobacco (7.6 percent), mainly due to the increase of tobacco duty); housing (4.9 percent); meals bought away from home (4.7 percent); food (excluding meals bought away from home) (3.1 percent); miscellaneous goods (2.4 percent); transport (2.2 percent) and miscellaneous services (2.1 percent).

On the other hand, year-on-year decrease in prices was recorded in August 2014 for durable goods (-3.6 percent).

A Government spokesman commented that, looking ahead, the relatively mild imported inflation alongside the generally moderate local price pressures should help keep underlying inflation contained in the rest of the year. Nevertheless, headline inflation will likely pick up temporarily in September 2014 on a year-on-year comparison, as the Government's payment of public housing rentals in September last year created a low base of comparison. 

Hong Kong Inflation Rate Slows Slightly

Census and Statistics Department | Joana Taborda | joana.taborda@tradingeconomics.com
9/22/2014 9:55:31 AM