Inflation drops to 3% in January

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The LNY was celebrated in mid-February this year compared to late January last year. The smaller increase in January this year was mainly caused by the higher prices in January last year around the Lunar New Year which led to a higher base of comparison, said the Census and Statistics Department. The year-on-year rate of inflation dropped in January 2013.

Hong Kong's inflation rose by 3% in January 2013 over the same month a year earlier and was lower than the corresponding increase of 3.7% in December 2012.

Removing the effects of all government's one-off relief measures, the year-on-year rate of increase in the Composite Consumer Price Index (CPI), the underlying inflation rate in January 2013 was 3.1%, also smaller than the December 2012 level of 3.8%.

Inflationary pressures are still likely to be largely contained in the near term, given the moderated increase in import prices and the modest local economic growth.