Hong Kong Inflation Rate Falls to Nearly 7-Year Low

Consumer prices in Hong Kong increased by 1.2 percent year-on-year in October 2016, easing from a 2.7 percent gain the previous month. It was the lowest inflation rate since January 2010, mainly due to a slowdown in housing prices growth.
Census and Statistics Department | Joana Ferreira | joana.ferreira@tradingeconomics.com 11/22/2016 9:58:19 AM
Year-on-year, prices increased at a slower pace for housing (+0.5 percent compared to +4.2 percent in September), as cost of public housing rent dropped sharply (-5.6 percent from +11.5 percent) while that of private housing rent went up (+0.7 percent from +3.8 percent); food (+2.6 percent from +2.7 percent); electricity, gas and water (+4.9 percent from +10.3 percent); miscellaneous services (+1.6 percent from +2.1 percent); and miscellaneous goods (+1.6 percent from +2.2 percent). Additional upward pressure came from transport (+2.4 percent from +1.7 percent).

By contrast, cost fell for durable goods (-4.9 percent from -5.4 percent) and clothing and footwear (-2.4 percent from -3.6 percent).

Meanwhile, underlying consumer prices, which exclude the effects of one-off government relief measures, went up 2.1 percent, following a 2.3 percent gain in September.

Taking the first ten months of 2016 together, the consumer price index rose by 2.7 percent over a year earlier. Netting out the effects of all Government's one-off relief measures, it rose by 2.4 percent.

Looking ahead, inflation pressure should remain moderate in the near term, given muted imported inflation and tame local cost pressures, a spokesman commented.

Hong Kong Inflation Rate Falls to Nearly 7-Year Low