Inflation at 2% in March

Overall consumer prices rose 2% in March year-on-year, slightly up from the average 1.9% rate of increase for January and February, the Census & Statistics Department announced today.

Netting out the effects of the Government’s one-off relief measures, underlying inflation was 1%, also slightly higher than the 0.9% average rate of increase for January and February.

The comparison to the average rate of increase for January and February is intended to neutralise the effect caused by the different timing of the Lunar New Year this year compared to last. It occurred in February this year but in January last year.

Compared with March last year, price increases were seen in the following categories: alcoholic drinks and tobacco; meals out and takeaway food; housing; miscellaneous services; transport; miscellaneous goods; and clothing and footwear.

By contrast, year-on-year decreases were recorded for electricity, gas and water, as well as durable goods and basic food.

The Government said underlying consumer price inflation was modest in March.

It noted that prices of meals out and takeaway food continued to rise relatively fast, while prices of basic food edged down from a year earlier.

Prices of energy-related items fell further. Price pressures on other major components remained broadly in check.

Looking ahead, the Government said overall inflation should stay contained in the near term, while domestic costs may face some upward pressures as the economy continues to grow.

External price pressures should remain on a broad downward trend, though heightened geopolitical tensions will bring uncertainties, it added.