Inflation held steady at 6.4 per cent last month, but economists warned the figure had reached a low and could soon start rising. Government figures for CPI (A), released yesterday, showed inflation holding steady as price pressure in vegetables, poultry and newspapers was counterbalanced by reduced rises for clothing, transport, eating out, and fuel and light. CPI (B), the index which measures inflation for middle income households, was higher at seven per cent, while the Hang Seng CPI for measuring inflation for the top 10 per cent of households, was at 7.1 per cent. The higher figures were driven by high private sector rents. For the top 10 per cent of households, the rent component of inflation has risen by 11.9 per cent for the year to June. Overall, the composite CPI was 6.8 per cent. But George Leung Siu-kay, economic adviser for Hongkong Bank, said inflation should start rising again in September or October - after 18 months of gentle decline - as improved consumer spending put pressure on prices. 'Right now we're at the bottom of the current inflation trend,' he said. But he said the end-of-year CPI (A) figure should still be way below last year's 8.7 per cent at about seven per cent.
