Hong Kong Inflation Continues To Pick Up In June

Hong Kong inflation rose to 1.2% in June as the economic continued its economic recovery, following a year-on-year rise of 0.8 percent in May, official figures showed Jun 22. A government spokesman attributed the June outcome to private housing rentals and charges for telephone and other communications services, coupled with higher prices for fresh vegetables.

For the first half of 2005, consumer prices rose 0.6% from a year earlier.

The spokesman said overall inflationary pressure remained moderate despite the upturn in June. "Looking ahead, consumer prices are expected to firm up further in the coming months on strengthening consumer demand and (higher) labour and rental costs," he added.

Copyright Agence France-Presse, 2005