Hong Kong inflation holds at 2pc in June as utility costs surge

Hong Kong’s overall consumer prices rose 2 percent year on year in June, unchanged from the increase recorded in May, with electricity, gas and water posting the sharpest rise among major expenditure categories.

After excluding the effects of the government’s one-off relief measures, the underlying inflation rate stood at 1.9 percent, also unchanged from May, the Census and Statistics Department said on Tuesday.

On a seasonally adjusted basis, the average monthly increase in the Composite Consumer Price Index was 0.1 percent in the three months ending June, the same as in the three-month period ending May.

After stripping out the effects of all one-off government relief measures, the corresponding average monthly increase eased to 0.2 percent from 0.3 percent.

Among the major components of the Composite CPI, prices for electricity, gas and water rose 9.2 percent from a year earlier. Transport costs increased 5.3 percent, while miscellaneous services and miscellaneous goods rose 5.2 percent and 2.3 percent, respectively.

Prices of durable goods fell 1.1 percent year on year, while basic food prices declined 0.5 percent.

A government spokesman said underlying consumer price inflation remained steady in June. Price increases for fuel-related items continued to accelerate, but pressures across most other major categories remained relatively moderate, partly offsetting the rise.

Inflation is expected to increase in the coming months as the earlier surge in international oil prices continues to feed through to local consumer prices.

The recent retreat in oil prices from their highs could provide some relief, although renewed tensions in the Middle East would require close monitoring, the spokesman said.

Price pressures in other areas are expected to remain broadly contained, helping to keep overall inflation moderate.
 

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