Inflation eases in August, food prices slow

PUBLISHED : Thursday, 20 September, 2012, 7:24pm
UPDATED : Friday, 21 September, 2012, 12:25am

Hong Kong’s inflation eased to 3.7 per cent in August as increases in private housing rentals and food prices slowed down, the Census and Statistics Department said on Thursday.

The year-on-year rise in the composite consumer price for August came down from 4.2 per cent in July.

July’s figures did not include the effects of government’s payment of public housing rentals introduced last July. Taking the one-off measure into account, July’s inflation was 1.6 per cent.

In August, the largest year-on-year increases in prices were recorded for housing and food, each of which rose 5.2 per cent.

Electricity, gas and water came second, with a 3.6 per cent increase; clothing and footwear grew by 2.8 per cent. However, prices of durable goods fell by 1.3 per cent year-on-year.

A department spokesman said inflation had receded thanks to slower year-on-year increases in food prices and private housing rentals.

He also said there would be room for inflation to ease further in the near-term as increases in import prices would probably become moderate in an economic slowdown.