Hong Kong: Inflation falls to over two-year low in April
Inflation came in at 1.1% in April, down from March’s 2.0%. April’s result marked the weakest inflation rate since June 2021, and reflected lower price pressures for food, housing and transport. That said, the slowdown in headline inflation was exaggerated by relief measures for housing tenants implemented this April; without these measures, inflation would have only dipped marginally in April from March.
Annual average inflation fell to 2.0% in April (March: 2.1%).
Lastly, consumer prices fell a seasonally adjusted 0.65% over the previous month in April, coming in below March’s flat result. April’s result marked the weakest reading since September 2021.
Inflation should average among the lowest rates in Asia this year, kept in check by the currency peg to the U.S. dollar, relief measures for housing tenants, and subdued retail sales as some Hong Kongers opt to shop on the mainland.