Inflation Closes In: What Can Workers Do?

In December 2010 Hong Kong inflation heated up — food, housing, transport, everything cost more, while pay rises lagged prices and wallets kept shrinking.

How bad was inflation?

Prices rose across the board. Food prices climbed, rents climbed, fares went up — monthly outgoings jumped while wage growth stayed limited, so real purchasing power retreated.

What drove it?

Imported inflation plus asset bubbles. Renminbi appreciation lifted import prices; capital inflows pushed up property prices and rents; some employers passed minimum-wage costs onward. Combined, inflationary pressure kept building.

How can workers cope?

Spend smart and invest to beat it. Budget daily spending carefully; don’t leave savings earning near-zero bank interest — invest to fight inflation. Long-term investments like MPF can outrun inflation; don’t neglect them. Compare MPF funds’ fees and track records at MPF fund comparison.