Hong Kong Inflation Rate Up to 4% in April


In April of 2013, the year-on-year inflation rate slightly increased to 4 percent from 3.6 percent recorded in the previous month, boosted by higher prices of fresh vegetables.

Amongst the various CPI components, year-on-year increases in prices were recorded for food (6.6 percent); housing (5.9 percent); electricity, gas and water (4.9 percent); meals bought away from home (4.3 percent); miscellaneous services (2.8 percent); alcoholic drinks and tobacco (2.2 percent); transport (2.1 percent); miscellaneous goods (1.9 percent) and clothing and footwear (1.2 percent).

On the other hand, year-on-year decrease in prices were recorded for durable goods (-5.3 percent).
 
On a seasonally adjusted basis, the average monthly rate of increase in the Composite CPI for the 3-month period from February to April 2013 was 0.5 percent, and that for the 3-month period from January to March 2013 was 0.4 percent.
 
Taking the first four months of 2013 together, the Composite CPI rose by 3.8 percent over a year earlier.
 
A Government spokesman said that the slightly higher underlying consumer price inflation in April was due mainly to the surge in prices of fresh vegetables. The increase in prices for many components in the underlying CPI remained moderate.
 
However, looking ahead, the spokesman expected inflation to rise slightly in the coming months as the lagged effects of the rise in private housing rentals during 2012 feed through. Nonetheless, imported inflation stayed tame and the recent softening in housing rentals should help contain the upward pressure on inflation in the latter part of this year.

Census and Statistics Department | Joana Taborda | joana.taborda@tradingeconomics.com
5/21/2013 10:14:15 AM