Hong Kong Inflation Rate Rises to 1.5% In October

Consumer prices in Hong Kong increased 1.5 percent year-on-year in October of 2017, higher than 1.4 percent in September. The slight uptick in annual inflation rate was mainly driven by rising prices of housing and food while cost of miscellaneous services fell less.

Year-on-year, prices advanced faster for housing (2.4 percent vs 2.3 percent in September); food (2.9 percent vs 2.4 percent), particularly food exlcuding meals bought away from home (3.3 percent vs 1.9 percent) and miscellaneous goods (0.6 percent vs 0.5 percent). In addition, cost decreased less for miscellaneous services (-0.4 percent vs -0.6 percent) and durable goods (-2.9 percent vs -3.3 percent).

On the other hand, prices slowed for transport (0.8 percent vs 1.8 percent) while fell for clothing and footwear (-0.5 percent vs 0.4 percent) and alcoholic beverages and tobacco (-1.3 percent vs 0.5 percent).

A Government spokesman said that consumer price inflation stayed fairly modest in October. The spokesman also commented that looking ahead, considering the slow increases in import prices and moderate local cost pressure, inflation risks should remain limited in the near term. The Government will continue to monitor the inflation developments closely, particularly its impact on the lower-income people.

Hong Kong Inflation Rate Rises to 1.5% In October

Luisa Carvalho | luisa.carvalho@tradingeconomics.com
11/21/2017 9:04:02 AM