Global Business News

Hong Kong inflation rockets to 7.9%, a 16-year high

hong-kong-inflation-rockets-to-7-9-a-16-year-high

In the latest regional reports, the inflation rate in Hong Kong has hit a 16 year high in July. This situation is expected to continue and the Hong Kong Government has that it would not be resolved anytime soon.

According to the official figures which were released earlier this week, consumer prices shot up to 7.9% as compared to the year before and this rate is the highest recorded since November 1995 when consumer prices were at 8.4%. It also added that the figures were distorted due to a suspension of rent by people living in public housing. If the relief measures are not accounted for, the 5.8% inflation rate was still higher than that which was recorded in June. Consumer prices rocketed due to mainly higher private housing rents in the property sector and pork prices. Due to the high global food prices, inflation will continue to remain notably high in the near future.