Hong Kong headline inflation accelerates slightly in October, inflation risks to remain limited in near-term

Hong Kong’s headline inflation accelerated slightly in the month of October. The Census and Statistical Department stated that the overall consumer prices rose 1.5 percent on a year-on-year basis. In September, the consumer price inflation had risen 1.4 percent. Excluding the effects of all Government’s one-off relief measures, the year-on-year composite CPI also rose 1.5 percent, slightly larger than that in September 2017. This was mostly because of the smaller decreases in the charges for package tours.

The year-on-year rises in prices of food excluding meals bought away from home came in at 3.3 percent. Meanwhile, the housing costs rose 2.4 percent in the month and the durable goods prices fell 2.9 percent. The transport cost rose 0.8 percent year-on-year in October.

“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”, stated a government spokesman.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest