HK's consumer prices up 3% was mainly due to a price hike of fresh vegetables.

HK’s Consumer Prices Index went up 3% in May, it was mainly due to a price hike of fresh vegetables.

Slightly increased from 2.8% in April, Hong Kong’s inflation is mild and in place with economic growth.

Hong Kong Census & Statistics Department announced the latest Hong Kong Consumer Price Index (CPI) for May on 22 June. The underlying inflation rate, netting out the effects of all Government one-off relief measures,  was 2.6%, comparing to 2.4% in AprilThe largest factor to push the index up is the rise of fresh vegetables price.

Prices of housing, electricity, gas and water, meals bought away from home, food, miscellaneous services and miscellaneous goods were also increased while durable goods, clothing and footwear were decreased.

Terence Chong Tai- leung, associate professor of economics at the Chinese University of Hong Kong, suggested that the slowdown of the mainland’s inflation rate may cause low inflation in Hong Kong. With a strong Hong Kong dollar and the red- hot property market, the growth in prices of different goods and services is expected to decelerate, except for flat rents, he said.

The fifth batch of iBonds is reportedly launching next month, with the size of its offering expected to remain at HK$10 billion with a three-year maturity. It is estimated the yield will be 3-4 percent a year.

For the previous four batches of iBonds, the half-yearly dividend payouts were linked to inflation and reached an annual rate of over 4 percent.

Source: The Standard Finance
Reference: Consumer prices up 3% by HK’s Information Services Department

 

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