Macau’s inflation rate is expected to remain high in the short-term with the rate only dropping if gaming revenues continue to go down over the next two to three years, said the Macau Economic Association.
Analysing the last 15 years, the association says Macau’s inflation rate has remained above 5 percent for more than five years. The association also conducted a survey in which 80 percent of respondents agreed that inflation was serious in the last three years, with 70 percent of them believing high inflation was caused by the rising housing and food prices.
Director of the association Joey Lao said the appreciation of the Yuan and economic growth has contributed to inflation. However, he said that the continuous gaming revenue drop has yet to affect local inflation.
Lao expects the high inflation rate will remain unchanged in the short future, unless gross gaming revenue keeps decreasing for two to three years.
“If gross gaming revenue returns to normal development, it would be difficult for the inflation to go down, it might remain unchanged, Lao was quoted by Macau Business as saying.