Two women and a man walk past a cafe in a shopping mall where anti-infection measures are put in place in Hong Kong, July 22, 2020. (CALVIN NG/CHINA DAILY)
HONG KONG – Hong Kong’s consumer prices increased by 0.7% in June year-on-year, smaller than the 1-percent growth in May, data from the government’s Census and Statistics Department showed.
Looking ahead, while inflationary pressures may increase further in the near term alongside the economic recovery and rising import prices, overall inflation should remain largely contained as the local economy is still operating below capacity, the government said
Netting out the effects of the government’s one-off relief measures, underlying inflation rate in June went up 0.4 percent from a year earlier, larger than the 0.2-percent recorded in May.
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The government said the rise was mainly due to the enlarged increases in the costs for meals out and takeaway food as well as the smaller decreases in proprietary medicine and supply prices.
June saw year-on-year price increases for electricity, gas and water, clothing and footwear, transport, meals out and takeaway food, basic food, durable goods, miscellaneous services and alcoholic drinks and tobacco. Year-on-year decreases in miscellaneous goods and housing were recorded.
“Prices of meals out and takeaway food as well as clothing and footwear showed widened year-on-year increases as the local epidemic situation continued to stabilize, helping to support consumption demand, the government said. Pressures on other major CPI components remained modest, it added.
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Looking ahead, while inflationary pressures may increase further in the near term alongside the economic recovery and rising import prices, overall inflation should remain largely contained as the local economy is still operating below capacity, it added.