Hong Kong Inflation Highest Since March 2015

(RTTNews) - Hong Kong's consumer price inflation accelerated in September to reach its highest level in seven-and-a-half years, data released by the Census and Statistics Department showed on Friday.

Consumer prices climbed 4.4 percent year-over-year in September, well above the 1.9 percent steady rate of increase in August.

Further, this was the strongest inflation rate since March 2015, when prices had risen 4.5 percent.

The larger increase in September was mainly due to the low base of comparison resulting from the waiver of public housing rentals as part of pandemic relief measures by the Hong Kong Housing Authority in September 2021, the agency said.

Charges for electricity, gas, and water grew the most by 14.5 percent annually in September, and housing costs registered an increase of 6.4 percent.

Food prices alone grew 3.8 percent from last year, and clothing and footwear prices moved up 3.0 percent.

Netting out the effects of all the government's one-off relief measures, underlying inflation held steady at 1.8 percent in September.

The average monthly rate of increase for the 3-month period ending September was 0.1 percent.

"While import prices will continue to rise notably amid high inflation in many major economies, the largely mild domestic cost pressures should help keep overall inflation moderate in the near term," a government spokesman said.

Separate official data showed that the business confidence index, which reflects expected changes in business conditions, dropped to 4 in the fourth quarter from 6 in the third quarter.