Hong Kong Inflation Rises To 2.0%

(RTTNews) - Hong Kong's consumer price inflation increased more-than-expected in January after remaining steady in the previous two months, data released by the Census and Statistics Department showed on Thursday.

The consumer price index, or CPI, climbed 2.0 percent year-over-year in January, faster than the 1.4 percent rise in December. Economists had expected inflation to rise to 1.8 percent.

The larger increase was attributable to the waiver of the extra public housing rent payable that ended in December 2024, as well as the increases in inbound and outbound transport fares and basic food prices due to the Chinese New Year effect, the agency said.

Food inflation rose 1.2 percent from 1.0 percent. Utility costs surged 13.2 percent, and transport charges were 4.0 percent more expensive compared to last year.

Netting out the effects of all the government's one-off relief measures, underlying inflation was 1.6 percent versus 1.3 percent in December.

The average monthly rate of increase for the 3-month period ending in January was 0.1 percent.

"Looking ahead, overall inflation should remain moderate in the near term," a government spokesman said.

As the Hong Kong economy continues to grow, domestic costs may see some upward pressures, while external price pressures should remain contained, the spokesperson added.