
Hong Kong inflation higher than expected due to rising rental rates
Inflationary pressures will persist.
According to BBVA, Hong Kong’s inflation rate rose to 3.8% y/y (consensus: 3.5% y/y) from 3.7% y/y the previous month. Although still on a broad declining trend, inflation was somewhat higher than expected due to rising housing rental rates.
"We expect inflationary pressures to remain in this range due to a buoyant property market and loose global monetary policies."