Inflation edged up 0.7% in June

The relaxed spike in June was due to the moderated price increases in pork.

Overall consumer prices inched up 0.7% YoY in June, smaller than the corresponding increase (1.5%) in May, according to figures from the Census and Statistics Department (C&SD). Netting out the effects of all Government's one-off relief measures, the YoY rate of growth would be 1.2%.

The smaller spike in June was due to the substantial moderation of the YoY hike in prices of pork when compared with May. The prices of pork started to surge in end May 2019, hence its rise in June 2020 would become narrower due to a high base of comparison, C&SD said.

“Meanwhile, price pressures on other major CPI components remained mild,” a government spokesperson said.

On a seasonally adjusted basis, the average monthly rate of change in the composite consumer price index (CPI) for Q2 was 0.0%, the same as that for the three-month period ending May.

Amongst the various components of the composite CPI, YoY rise in prices were recorded in June for food (4.9%), miscellaneous goods (2.7%), meals bought away from home (1.4%), housing (1.4%), miscellaneous services (0.8%) as well as alcoholic drinks and tobacco (0.1%).

On the other hand, declines were recorded in June for electricity, gas and water (-18.6%), clothing and footwear (-5.3%), and durable goods (-3.5%). As for transport, the prices remained unchanged.

For H2, the composite CPI edged up 1.6% YoY and also rose 1.3% YoY in Q2. For the 12 months ending June, inflation was on average 2.4% higher than that in the preceding 12-month period.

“Looking ahead, overall inflationary pressures will likely recede further in the near term amid austere global and local economic conditions,” the spokesperson added.