Hong Kong's Census and Statistics Department (C&SD) released the Consumer Price Index (CPI) data for October which showed that overall consumer prices rose by 1.2 percent in October, smaller than the corresponding annual increase of 2.7 percent in September.
The smaller increase in October 2016 was mainly attributable to the continuation of rates concession implemented as from April 2016, while there was no rates concession in October 2015.
On a seasonally adjusted basis, the average monthly rate of increase in the Composite CPI for the 3-month period from August to October 2016 was 0.3 percent, and that for the 3-month period from July to September 2016 was 0.2 percent.
Details of the report showed y/y increases in prices for electricity, gas and water (4.9% in the Composite CPI) transport (2.4 percent), alcoholic drinks and tobacco (1.9 percent), miscellaneous goods (1.8%) and miscellaneous services (1.6%). While y/y decreases in prices were recorded for durable goods (-4.9 percent) as well as clothing and footwear (-2.4 percent).
A Government spokesman said that the underlying inflation rate eased somewhat in October, with further moderation in the year-on-year increase in the private housing rental component. Looking ahead he said inflation pressure should remain moderate in the near term, given muted imported inflation and tame local cost pressures. The Government will continue to monitor the inflation developments closely, particularly its impact on the lower-income people.
