Hong Kong inflation rises 1.4pc

Hong Kong’s consumer price index rose 1.4 percent in March from a year earlier, slightly below the market forecast of 1.5 percent, government data showed on Wednesday.

The annual inflation rate was lower than the average increase of 1.7 percent recorded in January and February, mainly due to the decreases in inbound and outbound transport fares as well as charges for package tours, the Census and Statistics Department said.

"Looking ahead, overall inflation should remain modest in the near term. External price pressures should be broadly in check, though escalating trade conflicts continue to warrant attention. We will monitor the situation closely," the department said.

Among major components, electricity, gas and water recorded the sharpest year-on-year increase of the Composite CPI at 14 percent. Prices of alcoholic drinks and tobacco rose 4.4 percent, while transport and housing each saw an increase of 1.7 percent.

On the other hand, prices declined for clothing and footwear by 2.8 percent, basic food by 1.5 percent, and durable goods by 0.5 percent.

STAFF REPORTER