Hong Kong Inflation Rate Up to 4.6% In September

In September of 2013, Hong Kong's annual inflation rate rose 4.6 percent, slightly up from 4.5 percent recorded in August, mainly due to higher cost of fresh vegetables caused by the typhoon. Netting out the effects of all Government's one-off relief measures, the year-on-year inflation rate was 4.2 percent, lower than that in August (4.3 percent), as the upward adjustment of public housing rentals by the Housing Authority in September of 2012 faded out.

Year-on-year price increases were recorded in September for electricity, gas and water (9.2 percent); food (excluding meals bought away from home) (6.7 percent); housing (6.4 percent); meals bought away from home (4.5 percent); miscellaneous services (3.5 percent); transport (2.9 percent); miscellaneous goods (2.8 percent); clothing and footwear (1.8 percent) and alcoholic drinks and tobacco (1.0 percent).

In contrast, year-on-year decrease in prices were recorded for durable goods (-4.8 percent).

A Government spokesman said that underlying consumer price inflation eased slightly to 4.2 percent year-on-year in September, mainly because the impact of the public housing rentals upward adjustment a year earlier by the Housing Authority faded out, offsetting the temporary surge in food prices in that month caused by the typhoon. Also, the increase in the private housing rental component of the underlying Composite CPI stabilized in September.

Looking ahead, the subdued imported inflation and the moderated increases in fresh-letting residential rentals since early 2013 should help to contain the upside risks to inflation in the near term. 

Hong Kong Inflation Rate Up to 4.6% In September

Census and Statistics Department | Joana Taborda | joana.taborda@tradingeconomics.com
10/21/2013 9:58:12 AM