HK June CPI Tipped +5.8% Vs May's 5.7%

Forex News HK June headline CPI expected +5.8% on-year vs May's +5.7%, shows Dow Jones poll of 12 economists; "soaring food prices and private housing rentals remained the main contributors to inflation in June. In particular, floods in Guangdong added upward pressure to fresh food prices," Citigroup's Joe Lo says. Higher oil price another factor; Hang Seng Bank's Irina Fan says high global oil prices have filtered through to non-food components locally such as transport, with no sign of improvement in near term. Expects CPI +5% on-year in 2008, above government's target of +3.4%. Data due at 0815 GMT.