Hong Kong inflation hits 3.9%

Overall consumer prices rose a net 3.9% in September year-on-year on higher public housing rentals.

The Census & Statistics Department said that after deducting the effects of government one-off relief measures, the year-on-year rate of increase in the Composite Consumer Price Index in September was 3.9%, mainly due to the increases in public housing rentals and charges for household services.

Year-on-year increases in prices were recorded in September for housing (5.6%); meals bought away from home (5.1%); electricity, gas and water (3.7%); food (excluding meals bought away from home) (3.4%); miscellaneous services (3%); transport (2.1%); clothing and footwear (2%); miscellaneous goods (1.2%); and, alcohol and tobacco (0.7%).

Underlying inflation increased slightly in September, due mainly to increases in public housing rentals and charges for household services. The prices of many other major Consumer Price Index components, including food in particular, continued to show slower year-on-year increases.

On a seasonally adjusted basis, the average monthly rate of change in inflation from July to September was -0.6%, and from June to August was -0.7%. The average monthly rate of change in inflation from July to September was 0.3%, and that from June to August was 0.1% when netting out the effects of one-off relief measures.

Looking ahead, the austere economic environment and more moderate increases in import prices should help to contain inflation for the rest of the year. The volatility of food and commodity prices amid abundant global liquidity is cause for concern, said the government.