Nov Inflation Reaches 1.8%

Overall consumer prices rose 1.8% in November year-on-year, marginally larger than the 1.7% growth in October, the Census & Statistics Department announced today.

Netting out the effects of the Government’s one-off relief measures, November’s underlying inflation rate went up 1.2% compared to a year earlier, slightly larger than the 1.1% recorded in October.

Compared with November last year, price increases were seen in electricity, gas and water, clothing and footwear, transport, meals out and takeaway food, basic food, durable goods and miscellaneous services.

On the other hand, year-on-year decreases in miscellaneous goods, alcoholic drinks and tobacco and housing were recorded.

The Government noted that the rising underlying inflation rate was mainly due to the enlarged increases in electricity charges and prices of fresh vegetables, as well as the smaller decreases in the charges for information and communications services.

While the year-on-year increase in prices of energy-related items widened further and those of items such as clothing and footwear and transport were more visible, price pressures on many other major components remained broadly in check.

Looking ahead, inflation pressure is likely to build up further in view of the notable rise in import prices and the on-going economic recovery, but as domestic cost pressures remain limited, the underlying inflation should stay largely contained in the near term, the Government added.