Hong Kong Inflation Rate Jumps to Near 3-Year High of 3.3%

The annual inflation rate in Hong Kong increased to 3.3 percent in June of 2019 from 2.8 percent in the previous month and well above market expectations of 2.7 percent. It was the highest inflation since August of 2016, mainly due to higher prices of food and transport.

Year-on-year, prices advanced faster for food (5.6 percent from 3.6 percent in May), led by food, excluding meals bought away from home (12.1 percent from 6.5 percent) and those bought away from home (2.1 percent, the same as in May); and transport (1.7 percent from 1.5 percent). In addition, inflation was steady for miscellaneous services (at 2.1 percent), namely educational services (at 2.3 percent); and miscellaneous goods (at 2.1 percent). 

On the other hand, cost slowed for housing (4.1 percent from 4.2 percent) and alcoholic drinks and tobacco (1.8 percent from 3.2 percent) while prices continued to fall for durable goods (-1.5 percent from -2 percent); clothing and footwear (-3.1 percent from -1.2 percent) and electricity, gas and water (-5.1 percent from -4.9 percent).  

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 rose to 3.9 percent in June from 3.1 percent in the prior month. 

Looking ahead, inflation will likely remain moderate in the near term, in tandem with the easing in fresh-letting residential rentals earlier on and in external price pressures. The Government will continue to monitor the inflation situation closely, particularly the impact on the lower-income people.”, a government spokesman said.

Hong Kong Inflation Rate Jumps to Near 3-Year High of 3.3%

Census and Statistics Department | Agna Gabriel | agna.gabriel@tradingeconomics.com
7/22/2019 9:01:21 AM