Hong Kong’s inflation falls for fourth straight month in June

Consumer price index-led inflation in Hong Kong fell for fourth straight month in a row during June, mainly owing to easing in food price inflation and private housing rental components. Price pressures in many other major CPI components were also modest.

The consumer price index rose 2.4 percent year-on-year following 2.6 percent increase in May, data released by the Census and Statistics Department showed Thursday.  The figure equaled the rate in December last year and was the lowest since November, when it was 2.3 percent.

The underlying inflation, which excludes one-off relief measures of the government, eased to 2.1 percent from 2.2 percent. The rate was the lowest since October last year, reports said.

"Looking ahead, upside risks to inflation should remain contained in the near term, given the soft import prices and the continued feed-through of the earlier softening in local fresh-letting residential rentals," a government spokesperson said.

Meanwhile, the government also expects that sub-par economic conditions should also keep local cost increases in check.