Hong kong economy under control?
HAS Financial Secretary Mr Hamish Macleod got inflation on the run? In a radio interview yesterday he had the cheery ring of a man who had been proved right. Earlier forecasts that the benchmark inflation rate would be 9.5 per cent for the year were roundly pooh-poohed by commentators.
However, with the inflation rate in April falling to 7.7 per cent, the Government seems bang on target.
As Mr Macleod would himself point out, with the local currency linked to the US dollar there is very little action the Government can take to tackle inflation.
But, if it is falling due to external factors, partly the depreciating yuan which makes food imported from China cheaper, that's all to the good.
The bad news is that in most developed countries inflation of between one and three per cent is the norm.