Hong Kong's consumer prices grow faster than expected at 1.4 percent in December

Hong Kong's overall inflation grew at a hotter-than-expected pace of 1.4 percent in December, official data showed. 

The increase in the consumer price index was also faster than the 1.2 percent expansion in November. Economists had predicted a growth of 1.2 percent for last month. 

Netting out the effects of all the government's one-off relief measures, the underlying inflation rate was 1.2 percent in December, also larger than the figure for November, the Census and Statistics Department said. 

The larger increase was mainly due to the increases in the charges for package tours as well as inbound and outbound transport fares, the department said. 

Among the various components, a 4.3 percent year-on-year rise in prices was recorded for transport in December, followed by a 2 percent gain in alcoholic drinks and tobacco prices and a 1.6 percent hike in housing. 

On the other hand, the costs for durable goods fell by 2.6 percent, and those for clothing and footwear also declined by 1.7 percent. 

A government spokesman said price pressures on various major components remained generally contained in the month and that overall inflation should remain modest in the near term as domestic cost and external price pressures are still mild.