Published: 18:48, June 21, 2024 | Updated: 18:49, June 21, 2024
Hong Kong inflation rises to 1.2% in May
By Wang Zhan
Residents buy vegetables at a shop in Hong Kong’s Central and Western District on April 8, 2024. (SHAMIM ASHRAF / CHINA DAILY)

HONG KONG – Overall consumer prices in Hong Kong rose 1.2 percent in May year-on-year, slightly up from the 1.1 percent increase recorded in April, the Census and Statistics Department announced on Friday.

Netting out the effects of the special administrative region government’s one-off relief measures, underlying inflation was 1 percent, also higher than the 0.9 increase in April.

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Compared with May last year, price increases were seen in alcoholic drinks and tobacco; meals out and takeaway food; transport; miscellaneous services; miscellaneous goods; clothing and footwear; and housing categories, the data showed.

The government expects overall inflation to stay contained in the near term, while domestic cost pressures may rise as the city’s economy continues to grow

According to the data, year-on-year decreases were recorded for electricity, gas and water, and durable goods.

A government spokesman said underlying consumer price inflation remained modest in May.

Prices of meals out and takeaway food continued to increase at a relatively fast pace over a year earlier, while those of basic food were virtually unchanged.

Apart from noting that prices of energy-related items decreased markedly further, the government said price pressures on other major components remained broadly in check.

READ MORE: Hong Kong's composite CPI up 2.1% in 2023

Looking ahead, the government said overall inflation should stay contained in the near term, while domestic cost pressures may increase as the Hong Kong economy continues to grow.

External price pressures should continue to stay on a broad moderating trend, though geopolitical tensions may bring uncertainties, it added.