Macau, China, Sept. 26, 2025 (Lusa) - Inflation in Macau accelerated in August to its highest level since January, it was announced on Friday, in a month in which the consumer price index fell again in mainland China.
The index in Macau rose 0.27% in August, year-on-year, more than double the figure recorded in July (0.11%), and the highest since January (0.57%), according to official data.
According to the Statistics and Census Service, the acceleration in inflation was mainly due to food and non-alcoholic beverages (up 0.44%). The cost of meals purchased outside the home rose 1.54%.
Rent and mortgage costs rose by 0.84% and 0.56%, respectively, even before the Macao Monetary Authority approved, on 18 September, the first interest rate cut since the end of 2024.
In April 2024, the territory's Legislative Assembly approved the end of several taxes on the purchase of housing to "increase liquidity" in the property market, argued Lei Wai Nong, Secretary for Economy and Finance, at the time.
With the recovery in visitor numbers, the semi-autonomous Chinese region saw a 19.1% rise in the price of jewellery, goldsmithing and watches, products popular with tourists from mainland China.
In the opposite direction, the cost of excursions and hotels for overseas travel by Macao residents rose by 8.29%, while spending on education and insurance rose by 1.27% and 1.34%, respectively.
In mainland China, Macau's largest trading partner by far, the CPI fell again by 0.4% in August, year-on-year, the fifth month of deflation (annual decline in consumer prices) in the last six months.
Deflation reflects weakness in domestic consumption and investment and is particularly serious, as a fall in asset prices, which are usually contracted using credit, creates an imbalance between the value of loans and bank guarantees.
The data surprised analysts, who had predicted a 0.2% contraction in prices after the index remained unchanged in July, ending four consecutive months of decline.
The world's second-largest economy remains under deflationary pressure due to a combination of weak domestic demand and excess industrial capacity, exacerbated by the trade war with the United States, which has made it difficult for companies to sell off accumulated inventories.
The producer price index, which measures prices at the factory gate, fell 2.9% in August, marking the 35th consecutive month of contraction, although this represents an improvement on the 3.6% decline recorded in July.
The Chinese authorities have reiterated that strengthening domestic demand will be one of the central economic priorities for 2025.
In neighbouring Hong Kong, inflation rose slightly from 1% in July to 1.1% in August.
VQ/AYLS // AYLS
Lusa
