Annual inflation in Macau accelerated in November, for the fourth consecutive month, reaching 0.72%, the highest value in the last 15 months.
The rise in the consumer price index (IPC) in November was 0.12 percentage points higher than in October, and the highest value since August 2024 (0.74%), according to official data.
According to the Directorate of Statistics and Census Services, the acceleration in inflation was mainly due to food products and non-alcoholic drinks (up 1.25%). The cost of meals purchased outside the home rose 1.6%.
Spending on apartment rent or mortgages rose 0.73% and 0.49%, respectively. On November 11, the Macau Monetary Authority approved the third interest rate cut this year.
In April 2024, the territory’s Legislative Assembly ended several taxes on the acquisition of housing, to “increase liquidity” in the real estate market, defended the Secretary for Economy and Finance, Lei Wai Nong at the time.
With the recovery in the number of visitors, the semi-autonomous Chinese region recorded a 32.9% increase in the price of jewelry, goldsmithing and watches, popular products among tourists from mainland China.
On the contrary, electricity costs fell by 3.1%, while the price of telecommunications services fell by 3.4%.
Inflation in Macau accelerated in November, in a period in which the CPI rose again in mainland China, for the second consecutive month.
In mainland China, by far Macau’s largest trading partner, the CPI rose 0.7% year-on-year in November, registering the highest increase since February 2024. China has recorded deflation in six of the 11 months this year.
Deflation reflects weakness in domestic consumption and investment and is particularly serious, as a fall in the price of assets, usually contracted using credit, generates an imbalance between the value of loans and bank guarantees.
The value recorded in September confirmed the expectations of most analysts, after two consecutive months of falls, followed by an unexpected increase of 0.2% in October.
The world’s second largest economy has been facing deflationary pressures for more than two years, with weak domestic demand and excess industrial capacity penalizing prices, while uncertainty in international trade makes it difficult for suppliers to sell products.
The producer price index, which measures ex-factory prices, deepened the negative trend of the last two years in November, with a year-on-year decline of 2.2%.