ECONOMY | Staff Reporter, Hong Kong

Inflation slips to 2.3% in August

The increase in food prices hit 4.5%.

Inflation levels in Hong Kong eased mildly from 2.4% in July to taper off at 2.3% in August, according to the Census & Statistics department. 

“On a year-on-year basis, the underlying inflation rate eased slightly in August, thanks largely to the smaller increase in the charges for package tours and the decrease in inbound and outbound transport fares, which slightly outweighed the faster increase in the private housing rent component,” a government spokesperson said in a statement. 

Also read: PMI hits 48.5 in August as demand dries up

The surge in food prices led the inflation pick-up after nearly doubling the headline figure at 4.5%. Inflation levels for electricity, gas and water and housing also rose 3.4% and 2.3% respectively.

Inflation levels for alcoholic drinks and tobacco; clothing and footwear; and transport also rose by 2.3%, 1.9% and 1.4% respectively in August.

On the other hand, the price of durable goods fell by 1.9% over the same period.

Inflationary pressures are expected to increase modestly in the coming months amidst global inflation movements and continued feed-through of earlier rises in fresh-lettings residential rentals, the government spokesperson added.

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