22 Jul 2011

Hong Kong inflation up

10:00 am on 22 July 2011

Hong Kong's inflation rate has risen to its highest level in almost three years, fuelled by soaring housing costs and food prices.

The consumer price index rose 5.6% in June from a year ago, the highest rate since July 2008, and above 5.2% in May.

Hong Kong imports 90% of its food, mainly from China where the price of food has spiked in recent months.

The price of pork in China, the staple meat, jumped 57% in June.

Property prices in Hong Kong are up 12% so far this year and private rents are at their highest in 13 years.

The BBC reports the introduction of a minimum wage in May has also pushed up consumer prices.

The government expects the economy to expand by 6% this year and inflation to average 5.4%, its highest level since 1997.