Inflation slows to 3.7% in June from May

The government expects a further easing of the inflation rate in the coming months due to the difficult external economic environment and lower import prices.

The Census & Statistics Department said overall consumer prices rose 3.7% in June over the same month last year. This compares to the corresponding increase of 4.3% in May.

Inflation in Hong Kong has decelerated since April, when it dropped to 4.7% from 4.9% in March.

For the first half, inflation rose 4.7% over a year earlier. Taking into account out the effects of all temporary government relief measures, inflation rose 5.5% year-on-year.

Netting out the effects of all one-off government relief measures, the year-on-year rate of increase in the Composite Consumer Price Index for June was 4.5%, smaller than 5.1% in May, mainly due to the smaller increases in private housing rentals.

On a seasonally adjusted basis, the average monthly rate of increase in the Composite Consumer Price Index from April to June was 0.2%, and that from March to May was 0.4%.

Year-on-year price increases were recorded in June for food (excluding meals bought away from home) (7.1%); housing (5.8%); meals bought away from home (5.6%); clothing and footwear (3.2%); transport (2.8%); miscellaneous services (2.6%) and miscellaneous goods (1.6%).

Year-on-year price decrease were recorded in June for electricity, gas and water (-18.7%) and durable goods (-1.6%).