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Hawaii Economic Forecast Update:
Inflation Shock Means Sharply Lower “Real” Growth

Posted September 14, 2006 | Categories: Forecasts, Hawaii's Economy

 Inflation in Hawai‘i has reared its ugly head. For the first half of the year, Honolulu consumer price inflation topped the nation, with average prices rising nearly 6% over the previous year. Rising prices are cutting into the purchasing power of local residents and will lead to a sharp drop in measured real income growth this year. While an orderly process of economic slowing continues to be evident, the inflation impulse introduces some new risks.

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