The latest CPI data shows Hong Kong inflation rose by 2.6 per cent in January.
The increase comes at a time when retail sales in the territory are sagging and there are signs of an imminent decline in residential housing and rents. But the timing of Lunar New Year also had an impact.
The Census and Statistics Department (C&SD) says the Composite CPI, overall consumer prices rose by 2.7 per cent in January year-on-year and following a 2.5 per cent rise in december.
Netting out the effects of government’s one-off relief measures, the year-on-year rate of increase in the Composite CPI (the underlying inflation rate) of 2.6 per cent was also larger than December’s 2.4 per cent, mainly due to the smaller decreases in the charges for package tours and the enlarged increases in the prices of fresh vegetables.
A C&SD spokesman however described the inflation rate as moderate in January.
“The slight uptick in the year-on-year rate of CPI inflation was due partly to faster increases in food prices amid exceptionally cold weather during the month, and partly due to the difference in timing of the Lunar New Year, which fell on February 8 this year, but on February 19 last year. Indeed, the price pressures of many major CPI components remained benign.”
The spokesman said the upside risks to inflation “should remain limited in the near term”, given muted global inflation and soft international commodity prices.
“Local cost increases will likely be restrained by the subpar economic conditions and the retreat in rental cost pressures.”
By category, year-on-year prices for food (excluding eating out) rose 4.8 per cent on a composite basis, meals bought away from home by 4.1 per cent, housing by 3.8 per cent, transport by 1.2 per cent and alcohol and tobacco by 0.7 per cent.
Decreases were recorded in durable goods (down 5.3 per cent) and clothing and footwear (down 2.5 per cent).
More detailed CPI data is available in the monthly reports. Readers can download the January 2016 issue of the Monthly Report on the Consumer Price Index, the time series of CPIs at detailed level and the time series of CPIs at COICOP division level free of charge.
Hong Kong inflation figures released
