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2010-07-20
Hong Kong – Labor Market Conditions (Jul 20) and CPI (Jul 22) for June: We expect the jobless rate to remain unchanged at 4.6% in 2Q10, as regional trade and consumer sentiment remain resilient. The entry ofschool leavers to the labor force may start to build upward pressure on the labor force, but on balance, and seasonally adjusted, we expect the two to largely offset each other. We forecast a jump in headline inflation to +2.8% in June (vs. +2.5% in May), as we seeaccelerating upward pressure in private housing rent.Transport should contribute positively to the headline aswell, given the increase in subway fares from mid-June.
AsiaPacific Weekly.pdf
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