Updated at 6.05pm: Consumer prices in Hong Kong rose 2.1 per cent last month compared with May last year, the Census and Statistics Department revealed on Thursday.
A department spokesman said last month's price rises - which followed a 1.9 per cent growth in April - were due to higher prices for meals bought away from home, for jewellery and communication services.
The spokesman said rises in private housing rents increasingly fed through to last month's consumer price indices.
But he said inflationary pressure remained moderate as prices of most goods and services only recorded small increases or even declines.
'Looking ahead, consumer price inflation is likely to be sustained at a moderate level, as continuous expansion in production capacity amidst the economic upturn and rapid labour productivity growth help maintain the resource demand and supply balance. 'However, certain risk factors from the external front, including gradual building up of global inflationary pressures, high oil prices and renewed weakening of the US dollar, are to be watched,' he added.
