Hong Kong's Consumer Price Index (CPI) climbed by 2.2 percent in February over the same month a year earlier — an increase larger than the 1.4 percent rise recorded in January, latest government data shows.
The Census and Statistics Department said on Monday the increase in February has factored in the government’s payment of public housing rentals and the waiver of two-thirds of rents of Group B estates by the Hong Kong Housing Society in January.
Taking the first two months of 2020 together to neutralize the distortions by Lunar New Year, the underlying consumer price inflation rate went up 3.1 percent from the 2.9 percent increase in December 2019. This was mainly due to larger increases in prices of pork and some other basic food items. Price pressures on most major CPI components remained modest or moderate
A spokesman of the HKSAR government
Eliminating the effects of the government's one-time relief measures, the year-on-year CPI increase in February was 2.5 percent, less than that in January, which was 3.7 percent. The smaller increase was mainly due to the decreases in the charges for package tours and the smaller increases in the costs of meals bought away from home after the Lunar New Year.
Government data shows that in February, the largest year-on-year increase in prices was food (excluding meals bought away from home), which jumped 14.6 percent; this was followed by miscellaneous goods, the price of which rose 4.3 percent; then housing (2.7 percent). The price of meals bought away from home rose 1.5 percent.
A government spokesman said that taking the first two months of 2020 together to neutralize the distortions by Lunar New Year, the underlying consumer price inflation rate went up 3.1 percent from the 2.9 percent increase in December 2019. This was mainly due to larger increases in prices of pork and some other basic food items. Price pressures on most major CPI components remained modest or moderate.
Looking ahead, inflation should largely remain moderate in the near term, the spokesman said. External price pressures have receded amid a weak global economy and the recent strengthening of the Hong Kong dollar along with the US dollar, while the subdued local economic conditions should keep domestic cost pressures at bay.
The SAR government said it will continue to monitor the inflation situation closely, particularly the impact on low-income people.
