ECONOMY

Year-on-year inflation in Hong Kong slowed slightly in June, government reports

Overall consumer prices rose 3.6 per cent year-on-year in June, having risen 3.7 per cent in May

PUBLISHED : Monday, 21 July, 2014, 6:10pm
UPDATED : Monday, 21 July, 2014, 6:10pm

Year-on-year inflation in Hong Kong slowed slightly last month, government figures released on Monday showed, down to 3.6 per cent.

Overall consumer prices rose 3.6 per cent this June from the same month last year, having risen 3.7 per cent year-on-year in May, the Census and Statistics Department said.

The slightly smaller increase was mainly due to a slowed rate of increase in private housing rent.

The rise was led by 7.8 per cent price increases in alcoholic drinks and tobacco, mainly due to the tobacco duty hike, according to the department.

Despite it slowling slightly on the year-on-year rise last June, the second largest increase was in private housing rent, rising 5.5 per cent. In contrast, public housing rent went down 0.9 per cent.

Eating out cost Hongkongers 4.7 per cent more in June than it did in the same month last year, while other food prices rose 3.4 per cent.

A government spokesman said that the rate of increase in inflation was continuing to ease, with the composite consumer price index showing a slightly slower year-on-year increase in June.

The spokesman said the likelihood of inflation picking up again should remain limited in the near term, as slower private rent increases feed through to consumer prices.

The annual rate of inflation in April was 3.7 per cent.