Composite inflation jumped 3.5% in January 2011

Overall consumer prices rose 3.6% in January over a year earlier, higher than December's corresponding increase of 3.1%, the Census & Statistics Department says.

According to Hong Kong Information Services Department, netting out the effects of the Government's one-off relief measures, the year-on-year rate of increase in the Composite Consumer Price Index in January was 3.5%, larger than December, mainly due to the enlarged increases in the price of food, private housing rents, and package-tour charges.

On a seasonally adjusted basis, the average monthly rate of increase in the Composite Consumer Price Index for November to January was 0.5%. Netting out the effects of the Government's one-off relief measures, the average monthly rate of increase in the Composite Consumer Price Index for November to January was 0.5%.

Year-on-year price increases were recorded in January for food (excluding meals bought away from home) (8.2%); electricity, gas and water (7%); clothing and footwear (5%); miscellaneous goods (3.6%); meals bought away from home (3.3%); transport (3.2%); housing (3%); miscellaneous services (2.7%) and alcohol and tobacco (0.7%). Price decreases were recorded for durable goods (-2.5%).

Some of the faster price increases in the latter part of January were related to the timing of the Lunar New Year, the department said.

The economy will continue to face higher price pressures in the coming months, due to sustained rises in global food and commodity prices, higher inflation in the import sources, and also strong local economic conditions.

The whole Asian region is currently subject to a greater inflation risk, the department said. The Government will monitor the situation, especially inflation's impact on people in the lower income bracket.