Inflation hits new high at 6.9% in July

Driven by high property prices and rents.

The Hong Kong Statistics Department said July’s inflation was the highest level in two years. Many citizens complain that salary increases are not keeping up with inflation.

Overall expenditures, including housing and energy costs, have gone up in excess of 9%, dining out and grocery expenses increased by 4%, and transportation climbed by 2.7%.

There was significant growth in July in the annual Composite CPI, but this was mainly due to a low comparison reference, resulting from the government’s public housing subsidies in July of last year.

Factoring in the government’s one-time relief measures, inflation 4.2%, which was higher than June’s 4% but still primarily the result of a rise in private housing, rentals, and travel expenses.

The government said basic consumer price inflation climbed slightly because of the increase in private housing rentals and travel expenses, and was expected to continue to climb in the coming months.