Hong Kong CPI up 1.7pc in August, meets market forecast

Hong Kong's consumer price index rose 1.7 percent in August, the same as that in July, in line with market expectations, official data showed on Wednesday.

Netting out the effects of all governments' one-off relief measures, the year-on-year rate of increase in the underlying inflation rate also held steady at 1.9 percent last month, consistent with July's figures, according to the Census and Statistics Department.

Among the various components, electricity, gas and water saw a significant price increase of 11.5 percent in August, followed by a 4.7 percent rise in miscellaneous services, and a 3.9 percent increase in transport. 

Other components recorded included a 2.5 percent increase in miscellaneous goods, a 1.1 percent gain in meals out and takeaway food, a 0.8 percent hike in durable goods, and a 0.1 percent increase in housing. 

On the other hand, a year-on-year price decrease was seen in basic food, down 0.2 percent.

As for alcoholic drinks and tobacco, and clothing and footwear, its CPI remained unchanged in August over the same period a year earlier. 

For the first eight months, the city's CPI went up 1.7 percent over the same period a year ago.

Looking ahead, consumer price inflation will remain under upward pressure, as elevated international oil prices continue to feed through to fuel-related components, a government spokesman said, with the renewed escalation of tensions in the Middle East of late remaining a key uncertainty.

Yet, as price pressures on other fronts are expected to remain largely contained, overall inflation should stay moderate, the government spokesman added.

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