US inflation not likely to bite HK

Business | Victor Zhong 14 May 2021

Despite the United States' higher-than-expected inflation of 4.2 percent in April causing worries in some places, economists say it won't spur inflation in Hong Kong.

William Deng, the North Asia economist at UBS Global Research, said a key contributor in the US inflation figure was a surge in second-hand car prices, and such a factor could not impact significantly on Hong Kong. Another factor also distant from the SAR in every way was Americans taking to the roads once more.

Hong Kong's jobless rate of 6.8 percent is also considered a buffer against inflation.

UBS therefore puts Hong Kong's inflation at around 2 percent by year's end.

Iris Pang, chief economist for Greater China at ING, said most of Hong Kong's consumer prices are related to foods imported from the mainland.

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