Lower inflation and lower economic growth in store for Hong Kong

The Census & Statistics Department forecasts lower inflation in the coming months along with the relatively slow expansion of Hong Kong’s economy.

It also foresees a more moderate rise in import prices. The department said overall consumer prices increased 4.3% in May year-on-year but was smaller compared to the increase of 4.7% in April.

Taking into account the effects of all government's one-off relief measures, the year-on-year rate increase in the Composite CPI (or the underlying inflation rate) in May 2012 was 5.1%, also smaller than that in April (5.6%), mainly due to the smaller increases in private housing rentals.

Taking into account the effects of government stimulus measures, the year-on-year rate of increase in the Composite Consumer Price Index was 5.1%, smaller than 5.6% figure in April, mainly due to reduced increases in private housing rents.

On a seasonally adjusted basis, the average monthly rate of increase in the Composite Consumer Price Index from March to May was 0.4%, and that for February to April was 0.3%.

The average monthly rate of increase in the Composite Consumer Price Index without the effects of the government's one-off relief measures from March to May was 0.4%, and that for February to April was 0.3%.

Taking the first five months together, the Composite Consumer Price Index rose by 4.9% over a year earlier.

Year-on-year increases in prices were recorded in May for food (excluding meals bought away from home) (8.5%); housing (6.3%); meals bought away from home (5.7%); transport (3.3%); clothing and footwear (3.2%); miscellaneous services (3.2%); and, miscellaneous goods (2%).

Year-on-year decreases in prices were recorded in May for electricity, gas and water (-18.2%), and durable goods (-0.7%).