Inflation eases to 2.8% in May

The prices of electricity, gas and water fell.

Hong Kong’s inflation rate eased at 2.8% YoY in May from 2.9% in April, the Census & Statistics Department (C&SD) revealed.

Whilst the price pressures on most major CPI components were largely contained, the price of basic foodstuffs showed a visibly larger YoY increase amidst the supply disruption to fresh pork.

Netting out the effects of all government’s one-off relief measures, the underlying inflation rate also stood at 2.8%, compared to the 2.9% average rate of increase in April. This was due to the smaller increases in the charges for package tours and the decreases in local transport fares during the month.

Amongst the various components of the composite CPI, YoY increases in prices were recorded in May 2019 for food (6.5%), housing (4.2%), alcoholic drinks and tobacco (3.2%), meals bought away from home (2.1%), miscellaneous goods (2.1%), miscellaneous services (2.1%) and transport (1.5%).

On the other hand, YoY decreases in the components of the Composite CPI were recorded in May 2019 for electricity, gas and water (-4.9%), durable goods (-2.0%), as well as clothing and footwear (-1.2%).