Inflation up 2% in December 2022

Overall CPI rose by 1.8% in the previous month.

The overall consumer price index (CPI) increased by 2% in December 2022, up from 1.8% in the previous month, the Census and Statistics Department (C&SD) reported.

Netting out the effects of all one-off relief measures, the rate increased also by 2% year-on-year in December, higher than 1.7% in November. 

C&SD linked this to increases in the price of fresh vegetables and smaller decreases in the charges for information and communications services. 

“The underlying consumer price inflation rate remained moderate in December 2022, though showing some increase from the preceding month mainly due to a surge in fresh vegetable prices,” a government spokesman reported.  

“Prices of energy-related items soared further year-on-year, and those of clothing and footwear as well as food continued to increase visibly. But price pressures on other major components remained broadly in check. For 2022 as a whole, the underlying consumer price inflation rate averaged 1.7%.”

Read more: Inflation up 4.4% in September

Amongst the various components of the Composite CPI, year-on-year increases in prices were recorded in December 2022 for electricity, gas and water (14.7%); clothing and footwear (5.1%); basic food (4.2%); meals out and takeaway food (3.5%); transport (2.7%); miscellaneous services (1.9%); alcoholic drinks and tobacco (1.6%) and miscellaneous goods (0.5%).   

Meanwhile, year-on-year decreases in the components of the Composite CPI were recorded in December 2022 for durable goods (-1.5%) and housing (-0.1%).   

“External price pressures should remain notable, though there will likely be some moderation. Domestic cost pressures may increase alongside the expected improvement in local economic activities,” the spokesman also said. 

“Overall inflation could thus face some upward pressure, but should remain moderate in the near term.”