HONG KONG: Hong Kong’s inflation sank to a low of more than 30 months in April, with prices held in check by cheaper imports due to a stronger local currency, a trend tipped to continue.
Overall consumer prices rose 2.8 percent year on year last month, down from March’s 4.5 percent hike, the Census & Statistics Department said.
“Looking ahead, given the benign global inflation, lower international energy and food prices as well as the modest growth pace of the economy, inflation should remain contained in the near term,” a government spokesman said.
Electricity, gas and water, dining and housing were among the items that were more expensive than a year ago, while durable goods, clothing and footwear were cheaper.
Excluding the effects of all one-off relief by the government, underlying inflation was 2.4 percent, versus 2.8 percent in March.
“It reflects slower economic growth,” said Chinese University economics professor Terence Chong Tai- leung. “With a weaker yuan and stronger Hong Kong dollar meaning mainland imports are becoming less expensive, the low inflation rate may continue, or even dip to 1.8 or 1.9 percent.”
