The government is expecting inflation to rise over the next five years but will closely monitor the financial impact of price increases on low-income households, legislators were told yesterday.
Financial Secretary Henry Tang Ying-yen said the official inflation forecast for this year remained at 1.5 per cent.
'Over the coming five years, there is room for an upward adjustment in inflation, but it is not a monster to be feared,' Mr Tang said.
The government will regularly review the impact of inflation on households, especially those with low incomes.
Mr Tang said he was particularly concerned about the impact of inflation on people who already had difficulty making ends meet.
However, those receiving Comprehensive Social Security Assistance would be less affected since welfare payments had already been adjusted for inflation, he said.
Consumer prices in Hong Kong have been steadily rising but remain relatively mild. Inflation stood at 1.3 per cent in April - due to rates concessions between April and September. Without this relief measure, inflation would have been 2.4 per cent, unchanged from March.
