Inflation eases slightly to 2 percent in May
Official data released on Tuesday showed that overall consumer prices in Hong Kong rose by 2 percent in May over the same period a year ago, slightly slower than the 2.1 percent rise the month before. Netting out the government’s one-off relief measures, the Census and Statistics Department said the underlying inflation rate held steady at 1.8 percent, the same as in April. A government spokesman said the steepest price hike was recorded for alcoholic drinks and tobacco, which jumped by 19.6 percent over the same period a year ago. This was followed by electricity, gas, and water, which spiked up 16.6 percent. The cost of clothing and footwear climbed 5.8 percent, while meals out and takeaway food cost 3.9 percent more. However, the price of durable goods fell 3.7 percent from May 2022.  A government spokesman noted that prices of energy-related items continued to increase sharply year-on-year, but said overall inflation should remain moderate in the near term. “While domestic cost pressures may increase alongside the economic recovery, external price pressures will likely see some moderation though remaining notable,” he said.