May Inflation Up 1.5%

Overall consumer prices in May rose 1.5% year-on-year, less than the corresponding increase of 1.9% in April, the Census & Statistics Department announced today.

Netting out the effects of the Government's one-off relief measures, the year-on-year increase in May's underlying inflation rate was 1.9%, smaller than the 2.3% increase in April.

The department said this was mainly due to the smaller increases in the prices of pork and fresh vegetables, as well as private housing rentals.

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

Year-on-year price decreases were recorded for electricity, gas and water, clothing and footwear as well as durable goods, while the prices for alcoholic drinks and tobacco remained unchanged.

The Government said that prices of basic foodstuffs showed a narrower year-on-year increase as the impact of the surge in pork prices, which started last May, began to wane and price pressures on many other major Consumer Price Index components also receded.

Inflation should continue to ease in the near term as both external and domestic price pressures are expected to abate further amid subdued economic conditions, and food inflation is set to recede visibly against a high base of comparison.