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Prices Fall Further in Hong Kong

October 22, 1999

HONG KONG (AP) _ Consumer prices fell by 6.0 percent in September compared with the same month last year, as prices in a wide range of retail outlets kept dropping, the Hong Kong government said Friday.

Clothing and footwear prices dropped the most, by 23.1 percent. Hong Kong consumers also paid less for housing and meals.

Deflation is the sign of a troubled economy, and although Hong Kong has recently shown signs of growth after a 15-month recession, prices aren’t yet rebounding.

But the lower prices boosted consumer demand and inbound tourism arrivals. The volume of goods sold rose by 2 percent in August, the Census and Statistics Department said in a statement.

But in terms of value, the $1.9 billion in retail sales is an 8 percent drop compared to the same period in 1998.

Hong Kong’s prices have been dropping for 11 consecutive months.

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