The increase in rent prices in Macau slowed for the fifth consecutive month in February to post the smallest hike since July 2013, official data revealed yesterday. The ongoing softness of the real estate market, the major driver of prices here, was not enough, however, to stop inflation accelerating as the Chinese New Year holiday took prices of food, package tours and culture to new highs. Despite the holiday shopping frenzy and two million visitors during CNY in the city, the major point of February’s inflation figures was the slowdown of the real estate market that is starting to look like a trend as the local economy loses steam with plunging gaming revenues. According to the Statistics and Census Service (DSEC) the cost of housing and fuel increased 10.7 per cent last month from a year ago. That’s the fifth consecutive month of slower price growth and the smallest increase for almost two years. Only in July 2013 did rents rise less than last month, with a 9.04 per cent hike, data from DSEC reveals. With inflation in housing costs reaching the 10 per cent mark, the property market could return to the single digit growth rates that were the norm before the Summer of 2013. In 2012, real estate prices went up 6.7 per cent, in 2011, 3.4 per cent and in 2010 housing costs only increased by 0.02 per cent. CNY inflation Overall inflation increased 5.3 per cent in February from a year ago, above January’s 4.85 per cent hike but still the second lowest value for more than two years. The statistics bureau said that inflation accelerated last month due to the Chinese New Year holiday that increased the cost of eating in restaurants and joining package tours. The price of recreational and cultural services went up 9.49 per cent in February, the second greatest increase of all eleven categories DSEC use to calculate inflation here. Prices of food and non-alcoholic beverages registered the third biggest jump with an inflation of 4.82 per cent. From January, overall prices in Macau hiked 0.9 per cent last month with recreational and cultural services recording by far the largest jump (7.15 per cent), eight times the average inflation. Housing costs accelerated 0.54 per cent, while food went up by 0.82 per cent. The only exception was clothing and footwear prices that decreased 1.21 per cent due to seasonal women’s clothing, the Statistics and Census Service said. Inflation in Macau continues to revolve around housing and food costs, with these two categories representing 60 per cent of the basket used to calculate price variations in the city.
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