Hong Kong's consumer prices jumped 4.4% in February

Inflationary pressures to remain contained amidst moderated increase in import prices.

In a report, the Census & Statistics Department announced that the overall consumer prices rose 4.4% in February year-on-year, exceeding the corresponding increase of 3% in January.

Netting out the effects of the Government's one-off relief measures, the increase in the Composite Consumer Price Index in February was also 4.4%, compared to 3.1% in January.

Year-on-year increases in prices were recorded in February for miscellaneous services (6.1%); food (excluding meals bought away from home) (5.4%); housing (5.3%); meals bought away from home (4.8%); electricity, gas and water (4.7%); transport (2.2%); clothing and footwear (1.7%); miscellaneous goods (1.4%), and alcohol and tobacco (1.4%).

On the other hand, a year-on-year decrease in prices was recorded for durable goods (-3.8%).

The department said the higher year-on-year rate of consumer price inflation in February was distorted by the timing of the Lunar New Year, which fell in February this year but January last year.

Taking January and February together to remove such distortions, the underlying Composite CPI rose 3.8% over a year earlier, which was actually the same as those in the last few months of 2012.

Looking ahead, the department said inflationary pressures should remain largely contained in the near term, given the moderated increase in import prices and below-trend growth in the local economy.

Nevertheless, the Government needs to stay alert to upside risks to inflation stemming from the potential volatility of international food and commodity prices amid the global liquidity glut, as well as the progressive feed-through of higher housing rentals.

It will continue to monitor the inflation situation closely, particularly its impact on the lower-income people.