Hong Kong March inflation data is set to release tomorrow. According to a DBS Bank research report, the consumer price inflation is likely to have recovered to 2.4 percent on a year-on-year basis in March from 2.1 percent seen in the prior month.
A rising commodity price, softer USD in the midst of a dovish Federal Reserve monetary policy, as well as a relatively solid Chinese yuan exchange rate might exert some upward pressure on import cost. Yet, the overall inflation pressure is expected to stay moderate.
“Local cost is largely contained alongside a slow growing economy. The softening residential rentals should also keep the overall inflation in check”, added DBS Bank.