April Inflation Up 1.9%

Overall consumer prices rose 1.9% year-on-year in April, compared to the 2.3% increase in March, the Census & Statistics Department announced today.

Netting out the effects of the Government’s one-off relief measures, the underlying inflation rate was 2.3%, smaller than the increase in March.

Year-on-year price increases were recorded for food (excluding meals bought away from home), miscellaneous goods, housing, meals bought away from home, miscellaneous services, alcoholic drinks and tobacco as well as transport.

Year-on-year decreases were recorded for electricity, gas and water, clothing and footwear as well as durable goods.

The Government said the underlying consumer price inflation rate went down to 2.3% in April, as price pressures on most major Consumer Price Index components receded, offsetting the slight increase in food inflation.

Inflationary pressure is likely to ease further in the near term, it said, adding that domestic cost pressures should continue to abate amid the severe economic recession. External price pressures are expected to subside further in view of the plunging global demand and the recent strengthening of the Hong Kong dollar along with the US dollar.