Hong Kong consumer prices up 5.6% in June

Only the durable goods sector suffered a 3.7% drop in prices.

Private housing rentals and food prices are the two major driving forces accounting for 70% of the 5.5% year-on-year rate of increase in the underlying Composite Consumer Price Index in June.

Overall consumer prices rose 5.6% year on year in June, beating the corresponding increase of 5.2% in May, the Census & Statistics Department said, in its report, on Thursday.

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 June was 5.5%, compared to 5.1% in May, mainly due to the enlarged increases in private housing rentals, as well as the charges for household services and the price of pork.

The average monthly rate of increase in the index for the three-month period from April to June was 0.6%, the same as that for March to May. Netting out the effects of the Government’s one-off relief measures, the average monthly rate of increase for April to June was 0.6%, the same as that for March to May.

Year-on-year increases in prices were recorded in June for alcohol and tobacco (19.9%), mainly due to the 41.5% increase in tobacco duty; food (excluding meals bought away from home) (10.5%); electricity, gas and water (8.2%); clothing and footwear (6.7%); housing (6.5%); meals bought away from home (5.2%); transport (5%); miscellaneous goods (4.5%); and, miscellaneous services (3.3%).

A year-on-year decrease in prices was recorded for durable goods (-3.7%).

During the first half of the year, the Composite Consumer Price Index rose 4.5% over a year earlier. It rose 5.2% in the second quarter compared with the same period last year. For the 12 months ending June, it was on average 3.5% higher than in the preceding 12-month period.

The department said inflationary pressures remain notable. Private housing rentals and food prices are the two major driving forces accounting for 70% of the 5.5% year-on-year rate of increase in the underlying Composite Consumer Price Index in June.