Hong Kong's composite consumer price index (CPI) rose 1.5% in June year on year, before calculating the reduction in certain consumer subsidies, reported the Census and Statistics Department (C&SD) on Monday.
The headline June rate of inflation did not net out a "decrease in the government's provision of electricity charges subsidy compared to the same month last year," noted the C&SD.
Netting out "the effects of all government's one-off relief measures, the year-on-year rate of increase in the composite CPI (i.e. the underlying inflation rate) in June 2024 was 1.0%," added the C&SD.
Additionally, "on a seasonally adjusted basis, the average monthly rate of change in the composite CPI for the three-month period ending June 2024 was 0.0%," said the C&SD.
The central bank of Hong Kong, a special administrative region (SAR) of mainland China, is the Hong Kong Monetary Authority. The Hong Kong SAR maintains its own currency and monetary policy.
In general, the HKMA pegs its interest rate policy to match those of the US Federal Reserve.
In a prepared statement, the C&SD said that Hong Kong's "underlying consumer price inflation stayed modest in June. Prices of meals out and takeaway food recorded relatively fast increases over a year earlier, while those of basic food saw modest growth."
Prices of energy-related items continued to fall in June, noted the C&SD.
The C&SD forecast mild inflation for Hong Kong in the coming months.
"Looking ahead, overall inflation should stay mild in the near term. Domestic cost may face some upward pressures as the Hong Kong economy continues to grow. Meanwhile, external price pressures should remain on a broad moderating trend," advised the agency.
Comments