Commodity Prices Rise in Hong Kong
Confirming what a number of investors and economists already know, the consumer price index in Hong Kong rose in December, primarily driven by rising food prices and other commodity prices.
The composite consumer price index in December increased 1.3% year over year. That followed on the footsteps of price increases of 0.5% in November, giving rise to fears inflation could continue growing for some time, something many have been concerned about after central banks around the world continued to run their money printing presses.
Attempting to downplay the price increases in commodities and food, the Chinese government stated this: "As the economic recovery, both locally and globally, is still at the early stage, the prevailing excess capacity on the supply side should help to contain the upward pressures on costs and prices."
Some Chinese economists disagreed with the official party line, saying increases in energy and food prices, and possibly other commodities could push consumer prices even higher than they're growing now.
Estimates are prices could increase by 3.7 percent in 2010 based on what was already said plus rental increases.
Commodity Prices Rise in Hong Kong
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