Hong Kong: Inflation rose to 3.7%22 March, 2011, 18:59. Posted by Zarathustra
Tags: Budget, Economy, Hong Kong, Inflation
Obviously I don’t care about inflation in Hong Kong as much as that of the Great Britain, because things in Hong Kong will be inconsequential. After all, with the evil currency peg, the all-mighty Hong Kong Monetary Authority, the de facto central bank of Hong Kong, will and can do nothing to deal with inflation. Even though the Financial Secretary spoke of counter-cyclical fiscal policy just ahead of his tremendous failure in the Budget 2011, he ate his own words and stimulated economy by giving everyone HK$6000 to drive inflation up. Yes, he became an accidental Keynesian.
Anyway, enough of the rants. Consumer Price Index (Composite, All-item) rose 3.7% in February compared to a year ago. Inflation accelerated from 3.6% in January. Excluding the one-off relief measures, the headline inflation would be 3.6%, still 0.1% higher than the previous month. Just like I mentioned before, the consumer price inflation for low-expenditure (a.k.a low-income) families rose faster than the rest of the society. CPI (A) rose 3.9% vs. the 3.6% headline inflation, and vs. 3.4% for the richest bunch of people.
Source: Census and Statistics Department