INFLATION last month eased to 8.2 per cent, triggering expectations among private-sector economists that the Government will this week cut its official forecast for the year to nine per cent.
Government figures released yesterday show consumer price inflation is back on a moderating trend after spikes of 8.5 per cent and 8.6 per cent in May and June, respectively.
Bank of East Asia head of economic research Benjamin Chan Sau-san said: ''I expect the Government may well revise downwards its inflation forecast when it releases the second-quarter economic report on Friday.
''In the first seven months of the year CPI(A) was around 8.5 per cent. Although I expect an increase in import prices, especially from Japan, I think nine per cent is still reasonable for the whole year. So I think the Government will revise it down from 9.5 per cent.'' CPI(A), which covers increases in the cost of living for households spending up to $9,999 a month and is the most widely used measure of inflation, rose 8.2 per cent year-on-year in July.
Housing costs continued to outpace the index figure, but galloping price rises for foods and fuel were reined in.
In the year to July, the cost of food eaten at home increased 5.5 per cent; durable goods rose two per cent; and fuel and light was up 3.6 per cent.