
Hong Kong's inflation pegged to jump to 4.2%
Driven by food, rent prices.
According to Nomura, Hong Kong's CPI inflation slowed to 4.5% y-o-y in August from 6.9% in July. It expects inflation to rise gradually in H2, driven by higher food and imputed rent prices, only partly offset by inflation-mitigating fiscal measures such as a temporary waiver of public housing rent and electricity subsidies.
"We expect CPI inflation to rise from 4.1% in 2012 to 4.2% in 2013," says Nomura.