Inflation up 2.9% in 2019

Mild price hikes on imports and economic conditions will contain inflation in the near-term.

In 2019, consumer prices averaged 2.9% YoY higher than in 2018, reports the Census and Statistics Department (C&SD). Underlying consumer price inflation rate averaged 3% in 2019.

Consumer prices rose 2.9% YoY in December 2019, slightly smaller than the 3% YoY increase in November. The smaller increase in December was mainly due to the slight price expansions in local transport fares as well as in the costs for meals bought away from home. However, food inflation remained notable amidst elevated fresh pork prices.

Food prices excluding meals bought outside edged up 13.8% YoY during the month. The prices of meals bought away from home and transport also rose 2% YoY and 1.6% YoY, respectively. Housing prices also jumped 3% YoY.

In contrast, the prices of electricity, gas and water dropped 6.6% YoY over the same period. The prices of clothing and footwear (-3.1%), durable goods (-2.2%), as well as alcoholic drinks and tobacco (-1.3%) also decreased in December.

Looking ahead, mild imported inflation and subdued local economic conditions may help contain overall inflationary pressures in the near term C&SD added.