Told you it was going to be more expensive
Tuesday 23 August 2011, 12.01pm HKT
Whay-hey-hey! Inflation in Hong Kong is now the highest in 15 years.
The official word from the government is inflation is at 7.9%, adjusted to an annual basis.
Told you so in previous roundups.
I said the 41% price increase in tobacco will lead to all sorts of prices going up because of a domino effect. Look how true that turned out to be.
A report from Credit Suisse back in September 2010 has claimed that inflation risk in Hong Kong is forming, and may surprise the market over the next 18 months. Look at now.
Food is the worst-hit for us today (just like I said it would). Meat and vegetable prices have nearly doubled since March/April, even by the government’s own estimates. Things are bound to get worse because Hong Kong imports 95% of its consumables.
So you can’t afford to switch from being a meat-eater to a vegetarian anymore.
Meanwhile, rents in the private housing sector have hit an all-time high, up 10% from last month. It’s been up 10% month-on-month since February by my own calculations.
Right now, baseline rent for private housing is around HK$25 (US$3.21) a square foot (or HK$323 per square metre). For an average 500-square-foot (46.5 square metre) flat, that would be HK$12,500 (US$1,600 or £971) a month. That’s like paying US$58 (£35) for 3 by 6 feet beachmat. Ouch!
Sooner or later, people are going to have to sleep in the streets to make ends meet.
© The Naked Listener’s Weblog, 2011. Image via Professional Adviser HK.