January Inflation Up 1.4%

Overall consumer prices rose 1.4% year-on-year in January, compared to 2.9% in December 2019, the Census & Statistics Department announced today.

Netting out the effects of the Government’s one-off relief measures, the underlying inflation rate was 3.7%, compared to 2.9% in December.

Year-on-year price increases were recorded for food, miscellaneous services, miscellaneous goods, meals bought away from home and transport.

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

The Government said the increase of the underlying consumer price inflation rate was mainly due to the rise in charges for package tours and prices of pork around the Lunar New Year, while the drop of the headline consumer price inflation rate reflected the impacts of the Government’s one-off relief measures.

Looking ahead, overall inflationary pressures will likely be contained in the near term, given the mild external price pressures and subdued local economic conditions.

While the threat of the novel coronavirus infection may cause prices of certain daily necessities to rise, any disruption should only be temporary, the Government added.