Inflationary Pressure to Remain Mild

Economic Research	23 November 2016
Hong Kong
Economic Highlights
Inflationary Pressure to Remain Mild HK’s CPI came in lowered than expected in Oct 2016, due to drags from rates concession. Looking ahead, HK’s inflationary number will stay at low levels in the near term, given rising comparable base and subdued imported inflation. But in a longer term, we expect to see a mild increase in the headline CPI, driven by higher rental spending, rising labour cost and pass-through effect from rebound of commodity prices. Economist:  Zhang Fan| +8621 6288 9611 ext 105