Hong Kong Inflation Rate Steady at Near 3-Year High

The annual inflation rate in Hong Kong was at 3.3 percent in July 2019, unchanged from the previous month. It remained the highest inflation since August of 2016, mostly driven by cost of food and transport.

Year-on-year, prices went up further for food (5.9 percent from 5.6 percent in June), boosted by food, excluding meals bought away from home (12.8 percent from 12.1 percent) and those bought away from home (2.2 percent from 2.1 percent); transport (1.9 percent from 1.7 percent); miscellaneous goods (2.7 percent from 2.1 percent); and alcoholic drinks and tobacco (2.4 percent from 1.8 percent). Additionally, cost fell less for  durable goods (-1.2 percent from -1.5 percent); and clothing and footwear (-2.0 percent from -3.1 percent). Meanwhile, prices eased for housing (4.0 percent from 4.1 percent); and miscellaneous services (1.4 percent from 2.1 percent). Also, cost of electricity, gas and water dropped at a faster pace (-5.9 percent from -5.1 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 was steady at 3.9 percent in July.

“Looking ahead, overall price pressures should remain largely contained in the near term amid the earlier easing in fresh-letting residential rentals, modest global inflation and subdued local economic conditions. Yet, the inflation rate in the next few months will hinge on the supply situation and thus prices of fresh pork. 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 Steady at Near 3-Year High

Census and Statistics Department | Stefanie Moya | stefanie.moya@tradingeconomics.com
8/20/2019 8:48:38 AM