Underlying inflation moderates by 0.5ppt to 2.1% in September

It's the lowest level since November 2010.

The September underlying inflation eased notably by 0.5ppt m/m to only 2.1%. This was also the lowest level since November 2010.

According to a research note from Barclays, the lower inflation could be attributed to lower food inflation, fading out of public housing rent increase and electricity rebate coming into full effect in September.

The government further expected that inflation should remain contained given soft import price and moderate local cost pressure.

Here's more from Barclays:

Hong Kong’s underlying inflation eased to 2.1% in September 2015, which was 0.5ppt below the 2.6% underlying inflation recorded in August. It was the lowest level since November 2010.

Headline inflation in September was 2.0%, which was also smaller than the August headline inflation of 2.4%. The lower inflation could be attributed to lower food inflation, fading out of public housing rent increase and electricity rebate coming into full effect in September.

Among various categories, positive inflation was recorded in meals bought away from home (+4.2%), housing (+3.6%) and food (excluding meals bought away from home) (+3.5%).

Negative inflation was recorded in electricity, gas and water (-10.1%), durable goods (-5.6%), as well as clothing and footwear (-1.0%). A government spokesman commented that inflation should remain contained in the near term given the soft import prices and moderate local cost pressures.