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 August on 21 August. Overall consumer prices index rose 2.4% YOY in August and is 0.1% lower than that in July, it was mainly due to a special fuel rebate by electricity suppliers. The underlying inflation rate, netting out the effects of all Government one-off relief measures, was 2.6% YOY in August, matching the previous month.
Prices of housing, meals bought away from home, food, miscellaneous services, miscellaneous goods, alcohol and tobacco increased; while durable goods, electricity, gas and water and clothing and footwear decreased.
Hong Kong’s inflation rate slowed in August to 2.4 percent from a year ago, due mainly to a special fuel rebate by electricity suppliers.
It was 0.1 percentage points lower than a month ago. Netting out the effects of one-off government relief measures, underlying inflation, or the composite consumer price index, remained flat at 2.6 percent compared with July.
Officials expect the upside risks to inflation to remain limited in the near term, in view of soft international commodity prices and import prices.
Meanwhile, King Fook Holdings (0280) expects no surprise in sales during the coming golden week as mainland visitors rein in spending. Turnover fell 5 to 8 percent in the year to date, the jewelry retailer estimated, with revenue in the third quarter suffering a double- digit drop.
General manager Kay Wong Ka-ki said the retail market remains challenging, particularly for luxury products.
But the company is not too pessimistic on the fourth quarter as this period is regarded as a traditional peak season for weddings and banquets.
Separately, Italian luxury group Prada (1913) told The Wall Street Journal that it is negotiating with landlords over rent cuts in Hong Kong as it sees no improvement in sales. Although it has no plans of expansion or closure of the stores, if the sales performance remains unsatisfactory, the firm will consider not renewing leases.
Another high-end goods retailer, Kerling, the French house that owns brands such as Gucci, and Chow Tai Fook Jewellery Group (1929) are also talking with landlords.