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Hong Kong Inflation At 5-month Low

Hong Kong’s consumer price inflation eased marginally in January to a five-month low, data from the Census and Statistics Department showed on Friday.

The consumer price index climbed 2.4 percent year-on-year in January, following a 2.5 percent rise in December. Economists had expected a 2.6 percent rise in inflation.

Netting out the effects of the government’s one-off relief measures, core inflation increased slightly to 3.0 percent from 2.9 percent.

Food prices grew 4.2 percent annually in January. Meanwhile, price of electricity, gas and water dropped 4.6 percent.

“In the near term, the upside risks to inflation should remain contained. The recent moderation in fresh-letting residential rentals could have a mitigating effect in the months ahead”, a government spokesman said.

The government expects the moderating global economic growth and the earlier strengthening of the US dollar vis-?-vis other major currencies to help keep external price pressures in check.

The material has been provided by InstaForex Company – www.instaforex.com