FEB SEES 1.6% INFLATION

Overall consumer prices rose 1.6% in February year-on-year, less than the 1.2% growth in January, 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 February’s underlying inflation rate was also 1.6%, larger than the 1.2% recorded in January.

As the Lunar New Year fell in early February this year but in mid-February last year, the year-on-year comparison of the figures for January and February 2022 might have been affected by this factor to a certain extent.

Taking the first two months of 2022 together to neutralise the Lunar New Year effect, overall consumer prices rose by 1.4% over a year earlier. Netting out the effect of the Government’s one-off relief measures, the corresponding increase was 1.5%.

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

On the other hand, compared to the same period last year, decreases in electricity, gas and water and housing were recorded.

The Government noted that taking the first two months of 2022 together, the underlying consumer price inflation rate was 1.5%, slightly higher than that in December 2021.

Basic food prices showed an accelerated increase as the supply of fresh vegetables from the Mainland was temporarily affected by the epidemic-induced transport disruptions in the month.

The Government also pointed out that while the year-on-year price increases of energy-related items and certain CPI components such as transport and clothing and footwear remained visible, price pressures on other major components were broadly in check.

Looking ahead, the upward price pressures on the external front will remain but the underlying inflation should stay moderate in the near term, as the austere local epidemic situation will likely keep domestic price pressures at bay in the near term.

The resumption of stable food supply from the Mainland should help contain the upward pressures on basic food prices, it added.

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