Hong Kong Inflation Rate Steady at 2.7% in October

Inflation rate in Hong Kong came in at 2.7 percent in October 2018, the same as in the previous month. Prices increased mainly for electricity, gas & water; food (excluding meals bought away from home) and housing; while cost fell further for durable goods. The government expects moderate inflationary pressures in the rest of the year, due to rising local costs and higher residential rents.

Year-on-year, prices advanced faster for electricity, gas & water (4.1 percent vs 3.8 percent in September); food (3.9 percent vs 3.6 percent); housing (3.0 percent vs 2.9 percent) and transport (1.6 percent vs 1.3 percent). Contrarily, cost slowed for clothing & footwear (2.0 percent vs 2.5 percent) and miscellaneous services (2.7 percent vs 2.9 percent); and continued to fall for durable goods (-1.8 percent). 

On a monthly basis, consumer prices edged up 0.2 percent, the same as in the preceding 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. -, dropped to 3.0 percent (from 3.1 percent in September), due to smaller increases in the prices of fresh vegetables and the charges for package tours.

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

Hong Kong Inflation Rate Steady at 2.7% in October

Census and Statistics Department | Gabriela Costa | gabriela.costa@tradingeconomics.com
11/20/2018 9:08:08 AM