FX.co ★ Hong Kong Inflation Eases Slightly To 2.0%

The Census and Statistics Department has revealed that consumer price inflation in Hong Kong decreased slightly in March, having risen the preceding month.

The Consumer Price Index (CPI) saw a 2.0 percent year-over-year increase in March, slightly down from the 2.1 percent increase recorded in February.

Inflation within the food sector fell to 1.9 percent in March, decreasing from 2.2 percent the previous month. In a similar vein, transportation costs saw a marginally slower rate of growth, at 2.2 percent compared to the preceding month's 2.3 percent rise.

The data show a downturn in the annual growth of clothing and footwear prices, decelerating to 0.3 percent from the previous 1.3 percent. The cost of utilities continued its steep decline, falling by a total of 8.7 percent.

When taking into account the effects of one-off government relief measures, the underlying rate of inflation also fell slightly, from 1.2 percent to 1.0 percent.

The average monthly rate of change for the three-month period ending in March remained steady.

A spokesperson for the government anticipates inflation will remain stable in the short-term. They speculate that domestic costs could rise as Hong Kong's economy continues to expand. They also highlight the potential for external price pressures to remain in a downward trend, but warn that increased geopolitical tensions could bring unexpected changes.