Hong Kong CPI Hits 4.4% Y/Y In September; Highest Since 2015

Hong Kong’s headline inflation rate accelerated to a 7-year high of 4.4% y/y in September from 1.9% y/y in August, data released by the Census and Statistics Department showed on Friday.

The sharp jump reflected a low base effect resulting from the waiver of public housing rentals in September 2021. It was the highest reading since March 2015.

Underlying inflation, which nets out government relief measures, was 1.8% - the same as in August. “Moderate domestic inflation would offset imported inflationary pressures” going forward, the C&SD press release said.

Although prices of food, clothing and energy continued their upward trend, major components were "broadly in check", the C&SD said.

The high headline inflation figure comes after the Hong Kong government downgraded its 2022 GDP forecast to between -0.5% and 0.5% in August amid concerns of sustained monetary tightening. GDP growth of 1% to 2% had been forecast in May.