Hong Kong Inflation Rate Down to 4.5% in August

In August of 2013, Hong Kong's annual inflation rate rose 4.5 percent over the same month a year earlier, smaller than the 6.9 percent increase in July. The larger increase in July was attributable to the low base of comparison arising from the Government's payment of public housing rentals in July of 2012, and such effect did not come into play in August of 2013.

Year-on-year price increases were recorded in August for electricity, gas and water (10.2 percent); housing (6.8 percent); food (excluding meals bought away from home) (4.5 percent); meals bought away from home (4.2 percent); miscellaneous services (4.2 percent); transport (2.7 percent); miscellaneous goods (2.5 percent); clothing and footwear (1.4 percent) and alcoholic drinks and tobacco (1.0 percent).

In contrast, prices of durable goods  decreased -4.2 percent.

A Governmet spokesman commented that, looking ahead, underlying inflation is still subject to modest upside risks in the near term, mainly due to the lagged effects of the notable rise in private housing rentals during 2012. Nonetheless, imported inflation remained benign and the increases in fresh-letting residential rentals have moderated recently. These developments should help contain inflation further down the road.

Hong Kong Inflation Rate Down to 4.5% in August

Census and Statistics Department | Joana Taborda | joana.taborda@tradingeconomics.com
9/23/2013 9:56:13 AM