June sees 1.5% Inflation

Overall consumer prices rose 1.5% in June, year on year, higher than the 1.2% increase in May, the Census & Statistics Department announced today.

Netting out the effects of the Government’s one-off relief measures, underlying inflation was 1%, the same as in May.

Compared with June last year, price increases were seen in the following categories: alcoholic drinks and tobacco; meals out and takeaway food; miscellaneous services; transport; housing; miscellaneous goods; basic food; and electricity, gas and water.

On the other hand, year-on-year decreases were recorded for durable goods, and for clothing and footwear.

The Government said underlying consumer price inflation remained modest in June. It added that prices of meals out and takeaway food rose relatively rapidly over a year earlier, while prices of basic food saw more modest growth.

In addition to noting that prices of energy-related items continued to fall noticeably, it highlighted that price pressures on other major components remained broadly in check.

Looking ahead, the Government said overall inflation should stay mild in the near term, while domestic cost pressures may increase as the Hong Kong economy continues to grow.

External price pressures should stay on a broad moderating trend, although geopolitical tensions may bring uncertainties, it added.