JAN INFLATION RISES 1.2%

Overall consumer prices rose 1.2% in January year-on-year, less than the 2.4% growth in December, the Census & Statistics Department announced today.

Netting out the effects of the Government’s one-off relief measures, the year-on-year rate of increase in January’s underlying inflation rate was also 1.2%, smaller than the 1.4% recorded in December.

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

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

The Government noted that the underlying consumer price inflation rate edged down to 1.2% in January. While price pressures on many major CPI components were broadly in check, the year-on-year price increases of energy-related items and certain components such as transport and clothing and footwear remained more visible.

Considering that the earlier arrival of the Lunar New Year may distort January's inflation figures, it would be more meaningful to examine the figures for January and February combined when available to assess the underlying inflation situation.

Looking ahead, the Government said that the elevated global inflation along with temporary logistic disruptions caused by the pandemic may exert further upward pressures on import prices.

However, as the fifth wave of the local epidemic has taken a heavy toll on economic activities and will likely constrain domestic price pressures, the underlying inflation should stay moderate in the near term, it added.

---

PREVIOUSNEXT