The Hong Kong inflation rate appears to have stabilised in August.
New CPI data released by the Census and Statistics Department (C&SD) shows overall consumer prices rose by 2.4 per cent in August 2015 year on year – slightly lower than the 2.5 per cent in July 2015.
“Netting out the effects of all government’s one-off relief measures, the year on year rate of increase in the [the underlying inflation rate] in August 2015 remained virtually unchanged at 2.6 per cent as compared to July 2015. The slightly smaller increase in the Composite CPI in August was mainly due to the special fuel rebate in electricity starting from mid-August,” sai the C&SD.
On a seasonally adjusted basis, the average monthly rate of change in the Composite CPI for the three months from June to August was -0.6 per cent, and the corresponding rate of change for the three months from May to July was 0.3 per cent. Netting out the effects of all Government’s one-off relief measures, the average monthly rate of increase in the Composite CPI for the three months from June to August was 0.2 per cent and for the three months from May to July 0.3 per cent.
Among the various CPI components, year-on-year increases in prices were recorded in August 2015 for meals bought away from home (4.3 per cent in the underlying inflation rate and 4.2 per cent in the CPI), other food (4.1 per cent in both measures) and alcoholic drinks and tobacco (0.4 per cent 0.3 per cent).
Clothing and footwear prices fell by 1.8 per cent (underlying) and -0.8 per cent in the CPI.
A government spokesman said after holding largely stable in August, the upside risks to inflation should remain limited in the near term, in view of soft international commodity prices and import prices as well as the moderate local cost pressures.