Inflation slows to 3.2% in September

This was due to the effect of public housing rental adjustment dissipating in September.

Consumer prices rose by 3.2% YoY in September, smaller than the 3.5% YoY increase in August, according to data from the Census and Statistics Department (C&SD).

A government spokesman attributed the slowdown of inflation to the dissipation of the effect of upward adjustment in public housing rentals implemented last September 2018.

Food inflation remained elevated due to high pork prices, although the prices of fresh vegetables fell.

On a seasonally adjusted basis, the average monthly inflation the three-month period ending September 2019 was 0.2%.

Food prices soared 13.1% YoY in September, followed by housing prices and miscellaneous goods prices, both which rose 3.2% YoY. Prices of miscellaneous services, meals bought away from home, and transport, also expanded 2.6% YoY, 2.1% YoY, and 2.1% YoY, respectively.

On the other hand, the prices of electricity, gas and water tumbled 5.6% YoY, followed by clothing and footwear prices with a 1.8% YoY fall. The prices of durable goods as well as alcoholic drinks and tobacco also declined by 1.7% YoY and 0.9%YoY, respectively.

“Looking ahead, overall price pressures should remain contained along with subdued local economic conditions and further easing of imported inflation. Yet, the inflation rate may stay somewhat elevated in the near term given the supply situation of fresh pork,” the spokesperson said.