Hong Kong’s December overall consumer prices up 3.1%

The underlying consumer price inflation averaged at 1.7% for 2010, as expected by government forecasts.

Overall consumer prices rose 3.1% in December over a year earlier, larger than the corresponding increase of 2.9% recorded in November, the Census & Statistics Department says.

Netting out the effects of all Government one-off relief measures, the year-on-year rate of increase in the Composite Consumer Price Index in December was 2.8%, larger than that in November, mainly due to increases in private housing rentals and the cost of meals bought away from home.

On a seasonally adjusted basis, the average monthly rate of increase in the Composite Consumer Price index for October to December was 1%, the same as for September to November.

Netting out the effects of all Government one-off relief measures, the average monthly rate of increase for October to December was 0.4%, the same as for September to November.

Year-on-year price increases were recorded in December for electricity, gas and water (13%), food excluding meals bought away from home (6.4%), clothing and footwear (3.4%), transport (3%), meals bought away from home (2.8%), miscellaneous goods (2.8%), housing (2.5%), miscellaneous services (1.9%) and alcoholic drinks and tobacco (0.7%). Price decreases were recorded for durable goods (-2.9%).

In the fourth quarter of 2010, the Composite Consumer Price Index rose 2.8% over a year earlier. For 2010 as a whole, the index was on average 2.4% higher than in the preceding 12-month period, according to a government report.

The underlying consumer price inflation averaged at 1.7% for 2010 as a whole, the same as the Government’s earlier forecast.

The department said the economy is likely to face higher inflationary pressures in the coming months, due partly to the pick-up in import prices amid rising global food and commodity prices, and partly to the gradual building up of domestic price pressures along with the strong pace of economic expansion.

The Government will continue to monitor the inflation situation, especially the impact on lower-income people.