January 28, 2008

Hong Kong: Inflation looms larger as beef prices threaten to surge by 15 percent

Inflation is projected to worsen in Hong Kong as meat suppliers warned of an impending jump in wholesale beef prices by 15 percent.

Retail beef prices are expected to rise by 9 percent to 25 percent, between HKD86/kg (USD11/kg) and HKD99/kg (US$13/kg).

Hong Kong Kowloon Beef and Mutton Merchants Association said the average daily supply of live cows to state registered only 70 head over the last two weeks, 30 percent less than the normal supply.

Meanwhile, the Hong Kong Pork Traders General Association warned that pork prices may jump by about 33 percent to HKD79/kg (USD10/kg), as a result of scant supply.