Oct Sees 0.2% Deflation

Overall consumer prices in October fell 0.2% year-on-year, smaller than the corresponding decrease of 2.2% in September, the Census & Statistics Department announced today.

Netting out the effects of all the Government's one-off relief measures, the year-on-year increase in October’s underlying inflation rate was 0.4%, marginally smaller than September’s 0.5%.

The department said the smaller increase in October was mainly due to the smaller rises in private housing rentals and charges for household services.

October saw year-on-year price drops for electricity, gas and water, clothing and footwear, durable goods and transport, while prices for food, excluding meals bought away from home, miscellaneous goods, meals bought away from home, housing, alcoholic drinks and tobacco as well as miscellaneous services went up.

The Government said the year-on-year increase in private housing rentals continued to ease, while price pressures on many other major Consumer Price Index components remained modest amid weak economic conditions.

However, the year-on-year rise in prices of meals bought away from home accelerated slightly as the local epidemic situation remained stable.

Looking ahead, overall inflationary pressures should stay tame in the near term as the evolving COVID-19 pandemic still weighs on the global and local economic conditions, the Government added.