Keep an eye on underlying inflation in determining growth: analyst

This is different from core inflation.

In Hong Kong, it has been noted that ‘underlying’ inflation strips out the impact of one-off economic relief measures from the government.

According to a research note from Standard Chartered, this should not be mistaken for ‘core’ inflation (excluding food and energy), which Hong Kong does not report.

These concessions can include property rates waivers or electricity subsidies, which can distort y/y headline CPI growth rates during the months they are implemented.

Here's more from Standard Chartered:

The difference between the broad headline and underlying measures can exceed 3ppt in some months.

Currently, headline and underlying inflation are heading in the same direction. We think the underlying measure is a more accurate reflection of domestic price pressures.