Inflation in city edges up in April

Hong Kong's consumer price index climbed 2.1 percent in April from a year ago, slightly higher than an estimate of 2 percent growth for the month and faster than a 1.7 percent rise in March.

The larger increase was mainly due to the lower ceiling of rates concession in April when compared with the same month last year, the Census and Statistics Department said yesterday.

Excluding the effects of this and government one-off relief measures, the composite CPI grew by 1.8 percent in April, slightly larger than the 1.7 percent growth in March.

Among the components, year-on-year increases in prices were recorded for alcoholic drinks and tobacco at 18.2 percent; electricity, gas and water at 17.8 percent; and clothing and footwear at 6.4 percent.

Meals out and takeaway food also saw an increase of 4.2 percent in prices in April while miscellaneous services and transport posted a 2.3 percent and 2.2 percent rise.

Durable goods reported a 3.3 percent decrease in prices during the month.

Prices of energy-related items continued to increase sharply, and those of clothing and footwear as well as meals out and takeaway food rose visibly. Price pressures on other major components remained broadly in check, a government spokesman said.

Looking ahead, overall inflation will probably pick up in the rest of 2023, though remaining largely moderate, the spokesman said.

Domestic cost pressures may increase alongside the economic recovery while external price pressures should see some moderation, but they were likely to remain notable for some time, he added.