Hong Kong’s consumer price index rises slightly in July, likely to remain higher in months ahead

Hong Kong’s consumer price index rose on a year-on-year basis in July. According to the Census and Statistics Department data, the consumer price index rose 2.4 percent in July, remaining virtually unchanged as compared to June. Stripping the effects of all Government’s one-off relief measures, the year-on-year rate of rise in the Composite CPI in July also stayed virtually unchanged at 2.7 percent as compared to June 2018.

On a seasonally adjusted basis, the average monthly pace of rise in the Composite CPI for the three-month period from May to July came in at 0.2 percent, and that for the three-month period from April to June 2018 came in at 0.1 percent. Excluding the effects of all Government’s one-off relief measures, the average monthly pace of rise in the Composite CPI for the three-month period from May to July 2018 was 0.2 percent, the same as that for the three-month period from April to June 2018.

Amongst the various CPI components, year-on-year rises in prices were seen in food, electricity, gas and water. Rises were also witnessed in clothing and footwear, housing, transport, miscellaneous services and miscellaneous goods.

According to a government spokesman, the underlying inflation pressure remained largely stable in June, with the year-on-year rate of change in the underlying Composite CPI staying unchanged at 2.7 percent.

“In view of the edging up of global inflation and continued feed-through of earlier rises in fresh-letting residential rentals, local underlying consumer price inflation in the months ahead may remain somewhat higher than in the first half of 2018, when it averaged 2.4 percent. Yet, inflation should stay within a moderate range for 2018 as a whole”, added government spokesman.