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Country Report Macau

Figures published on January 21st by Macau's Statistics and Census Service showed that consumer price inflation moderated to 5.6% year on year in December 2014, down from 6.1% in November. This brought the annual average inflation rate for 2014 to 6.1%.

The end of the gambling-fuelled boom in Macau, which saw GDP contract in year-on-year terms territory in the third quarter of 2014, lies behind easing inflationary pressure. The slowdown in the pace of month-on-month change in prices, from 0.5% in November to 0.3% in December, suggests that headline rates of inflation are likely to continue to fall.

In the full calendar year, housing and fuels prices rose by an average of 11.9%, while food and non-alcoholic beverages were up by 6.1%. These two categories together have a 55.7% weighting in the consumer price index (CPI). They continue to rise at a rapid rate: housing and fuels prices were up by 11.7% year on year in December, and food and non-alcoholic beverages prices by 5.8%. There was also a 5.4% year-on-year increase in health services prices in December, owing to higher charges for out-patient services.
Country Report Macau

Economic woes cool inflation
Impact on the forecast
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