More pain for Hong Kong’s consumers

Rising food and rent prices drove inflation upwards to 5.7% in December compared to the same period in 2010.

Basic commodities have become a lot more expensive in already too expensive Hong Kong.

The Census & Statistics Department said food prices and private housing rents remained the largest contributors to inflation, accounting for more than 75% of the December inflation rate.

The uptick in December pushed inflation to an average of 5.3% for 2011. 

Rumors are rife that Financial Secretary John Tsang could approve power subsidies and property-rate waivers in the February budget to ease inflationary pressures. In March 2011, the government approved a HK$61 billion stimulus package that included HK$6,000 cash subsidies for 6.1 million permanent residents.

Year-on-year increases in prices were recorded in December for alcohol and tobacco (20.3%), food (excluding meals bought away from home) (11.5%), housing (8.5%), clothing and footwear (6.1%), meals bought away from home (6%), transport (4.4%), miscellaneous services (3.8%) and miscellaneous goods (3.6%).

Year-on-year falls were recorded for electricity, gas and water (-16.7%) and durable goods (-3%).

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Tags: Census & Statistics Department, Hong Kong, inflation,Financial Secretary John Tsang