Feb Inflation Up 2.2%

Overall consumer prices rose 2.2% year-on-year in February, compared to 1.4% in January, the Census & Statistics Department announced today.

Netting out the effects of the Government's one-off relief measures, the underlying inflation rate was 2.5%, compared to 3.7% in January.

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

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

The Government said that taking the first two months this year together to neutralise the distortions by the timing of the Lunar New Year, the underlying consumer price inflation rate went up slightly to 3.1% from 2.9% in December 2019, mainly due to larger increases in prices of pork and other basic foodstuffs. Price pressures on most major Consumer Price Index components remained modest or moderate.

Inflation should remain largely moderate in the near term, it said, adding that external price pressures have receded amid a weak global economy and the recent strengthening of the Hong Kong dollar along with the US dollar, while the subdued local economic conditions should keep domestic cost pressures at bay.