FX.co ★ Hong Kong Inflation Steady At 2.5%

Hong Kong's consumer price inflation remained steady in August, following an upward trend over the previous three months, according to data released by the Census and Statistics Department on Friday.

In August, the Consumer Price Index (CPI) increased by 2.5 percent year-over-year, consistent with the rate in July, marking the highest inflation rate in eight months.

Housing costs maintained a stable annual growth rate of 3.3 percent in August. In contrast, prices for electricity, gas, and water saw an accelerated increase, rising by 4.8 percent compared to 2.3 percent in July.

Food prices experienced a more modest rise of 1.8 percent, while prices for durable goods declined by 0.9 percent.

Excluding the impact of the government's one-time relief measures, the underlying inflation rate also stabilized at 1.2 percent.

The average monthly rate of increase for the three-month period ending in August stood at 0.6 percent.

"Looking ahead, overall inflation should remain mild in the near term," stated a government spokesman.

The spokesperson noted that domestic costs might face moderate upward pressure as Hong Kong's economy continues to grow. However, external price pressures are expected to ease further overall, despite uncertainties due to geopolitical tensions.