Inflation slows slightly in March

Consumer price inflation fell slightly to 3.6%.

The Census and Statistics Department said inflation for March fell below the consensus forecast of 3.7% and the average rate of 3.7% for January and February.

Hong Kong normally compares the annual inflation for March with the average rate of increase in January and February combined to remove the price volatility caused by the different timing of the Lunar New Year.

Excluding government's one-off relief measures, underlying inflation fell to 3.7% from the combined rate of 3.8%, mainly due to the decreases in prices of fresh vegetables.

Food prices rose 3.7% from the prior year. Housing costs increased 5.2% while the cost of electricity, gas and water climbed 5.1%.

The government said inflationary pressures should remain largely contained in the near term, given the moderated increase in import prices and below-trend growth of the local economy.