Hong Kong consumer price inflation decelerates marginally in December

The Hong Kong consumer price inflation slowed down just a bit in the month of December. According to the Census and Statistics Department, the consumer price inflation came in at 2.9 percent year-on-year, a slight deceleration from 3 percent recorded in the prior month. The smaller rise was mainly due to the smaller rises in local transport fares and the costs for meals bought away from home. Excluding the effects of all Government’s one-off relief measures, the year-on-year pace of rise came in at 2.9 percent, remaining the same as the print of November.

Looking at the different components, year-on-year price rises were seen in food, which saw a rise of 13.8 percent. Miscellaneous goods, housing, meals bought away from home recorded a price rise of 3.4 percent, 3 percent and 2 percent, respectively. Meanwhile, miscellaneous services and transport recorded a price rise of 1.6 percent each.

Meanwhile, electricity, gas and water recorded a fall of 6.6 percent. Clothing and footwear saw a price drop of 3.1 percent. Durable goods and alcoholic drinks and tobacco saw a price fall of 2.2 percent and 1.3 percent, respectively.

In the four quarter, the consumer price inflation came in at 3 percent year-on-year. Meanwhile, for the 2019 as a whole, the headline inflation came in at an average of 2.9 percent year-on-year.

“Looking ahead, mild imported inflation and subdued local economic conditions should help contain overall inflationary pressures in the near term. The Government will continue to monitor the inflation situation closely, particularly the impact on the lower-income people”, commented a government spokesman.