Hong Kong inflation dropped to 3.9%

Prices continue to moderate.

According to Barclays, Hong Kong’s overall consumer prices rose 3.9% y/y in February 2014, lower than 4.6% y/y increase in January.

Excluding the government’s one-off measures, the underlying CPI increased by 3.6% y/y, also below 4.3% y/y in January.

Here’s more from Barclays:

Taking January and February together to neutralise the distortions by the timing of the Lunar New Year, the overall CPI rose 4.3% y/y on average while the underlying CPI increased by 4.0% y/y, same as 4Q13.

Prices of fresh vegetables rose faster amid cold weather in February while the rise in private housing rentals continued to moderate.

Among the key components, electricity, gas and water was up 5.6% y/y, housing up 5.5% y/y, meals bought away from home up 4.2% y/y while food (excluding meals bought away from home) rose 4.1% y/y.