Hong Kong’s headline inflation likely to have accelerated in September

Hong Kong’s September inflation data is set to release tomorrow. According to a DBS Bank research report, the headline inflation is likely to have accelerated to 3.7 percent on a year-on-year basis, from August’s 3.5 percent.

The rise in pork and fruit costs in China have exerted upward pressure on food prices. A soft HKD should also keep import costs high.

“Yet, headline local costs are largely contained due to slow economic growth and the latest one-off relief measures imposed by the government”, added DBS Bank.