HK inflation steady in April, rising 1.7pc

Hong Kong's overall consumer prices rose 1.7 percent year on year in April, lower than market expectations, and matching the number recorded in March. Data released by the Census and Statistics Department on Thursday also showed the city's underlying inflation, or the annual rate netting out effects of government's one-off relief measures, stood at 1.6 percent, also same as in March. By categories, prices of electricity, gas, and water rose the most, up by 5.5 percent year on year during the period, while prices for public transport increased by 4.3 percent. Prices of alcoholic drinks and tobacco also went higher, rising by 2.3 percent while housing rose by one percent. Meanwhile, prices of durable goods declined by 1.9 percent and that of clothing and footwear dropped 0.3 percent. Commenting on the figures, a government spokesperson noted that while prices of fuel-related items continued to accelerate, other items were in check, therefore helping balance the overall inflation figures, which remained "moderate". "Looking ahead, as international oil prices remain elevated, the corresponding feed-through process to fuel-related components in consumer prices should continue in the coming months," the spokesperson said. "The final impacts would hinge on the evolving situation in the Middle East. Yet, price pressures from other fronts are generally contained, which should help rein in the potential upward pressure on overall inflation." The city's headline annual inflation rate has remained steady for three months in a row. Earlier, the government raised its headline overall inflation forecast for this year to 2.6 percent, up from the 1.8 percent projected in February's budget, citing higher global energy prices. Edited by Tony Sabine