June 22, 2022
HONG KONG – The overall consumer prices in Hong Kong rose 1.2 percent in May year-on-year, smaller than the 1.3 percent increase in the previous month, according to the Census and Statistics Department.
Yet, with domestic cost pressures remaining mild, overall inflation should stay moderate in the near term.
Netting out the effects of the government’s one-off relief measures, the year-on-year rate of increase in May’s underlying inflation rate was 1.7 percent, higher than the average increase rate of 1.6 percent in April, the department announced on Tuesday.
The larger increase was mainly due to the enlarged increases in electricity charges as well as the costs for meals out and takeaway food.
Meanwhile, prices of clothing and footwear also recorded accelerated increases amid the stable local epidemic situation in the month. Prices of energy-related items continued to soar.
Year-on-year increases were recorded for clothing and footwear (5.6 percent); basic food (4.9 percent); meals out and takeaway food (3.5 percent); durable goods (1.7 percent); transport (1.5 percent); miscellaneous services (1.3 percent); alcoholic drinks and tobacco (1.1 percent) and miscellaneous goods (0.6 percent).
Meanwhile, price drops were seen for gas and water (-4.9 percent) and housing (-0.5 percent).
Looking ahead, the government expects external price pressures to remain notable amid the rampant inflation in some major import sources.
“Yet, with domestic cost pressures remaining mild, overall inflation should stay moderate in the near term,” said a government spokesman.