August Sees 0.4% Deflation

Overall consumer prices in August fell 0.4% year-on-year, less than the corresponding decrease of 2.3% in July, the Census & Statistics Department announced today.

Netting out the effects of the Government's one-off relief measures, the year-on-year increase in August’s underlying inflation rate was 0.1%, slightly smaller than the 0.2% in July.

The department said it was mainly due to the smaller increases in the prices of pork and private housing rentals.

August saw year-on-year price falls for electricity, gas and water, clothing and footwear, durable goods, transport and meals bought away from home.

Prices for food, excluding meals bought away from home, miscellaneous goods, alcoholic drinks and tobacco, miscellaneous services and housing rose.

The Government said the underlying consumer price inflation rate further edged down as economic conditions remained weak amid the local epidemic's third wave.

Prices of meals bought away from home saw a slightly larger year-on-year decline, while price pressures on many other items receded further.

Looking ahead, price pressures on both external and domestic fronts should remain tame in the rest of year amid subdued global and local economic conditions, the Government added.