Hong Kong faced less inflationary pressure in May as private home rentals and food prices rose at a slower pace.
The Consumer Price Index gained 4.3 percent last month from a year back versus a 4.7 percent jump in April. “Consumer price inflation receded further in May, thanks to the continued tapering of food inflation and the narrower rise in private housing rentals,” a government spokesperson said.
A slowdown in the expansion of the local economy coupled with a more moderate rise in import prices will continue to temper the CPI in the coming months, the spokesperson said.
Prices of food, excluding meals bought away from home, rose 8.5 percent in May year-on-year.
Such prices had risen 8.8 percent in April. Rentals of private housing climbed 7.2 percent last month, compared to an 8.1 percent gain in April.
“Price pressures in Hong Kong are easing at the expected gradual pace,” said Donna Kwok, greater China economist of HSBC (0005). “With mainland inflation now in clear decline, global growth still slowing and last year’s favourable base effect intensifying, we expect Hong Kong’s CPI to ease through July.”
But she warned: “A relative stabilisation of growth will likely soon start to fan price pressures again.”
Declines in prices were seen in utilities – due to a government subsidy – and durable goods, which eased by 18.2 percent and 0.7 percent respectively.
Category: Hong Kong