Hong Kong Inflation Eases To 1.4%

(RTTNews) - Hong Kong's consumer price inflation eased more-than-expected in February after accelerating in the previous month, data released by the Census and Statistics Department showed on Thursday.

The consumer price index, or CPI, climbed 1.4 percent year-over-year in February, slower than the 2.0 percent rise in January. Economists had expected inflation to ease to 1.8 percent.

The smaller increase in February was mainly due to the high base of comparison stemming from the Chinese New Year falling in February last year, in particular food prices and the charges for package tours, the agency said.

Food inflation moderated notably to 0.1 percent from 1.2 percent. Inflation based on transportation also softened to 2.6 percent from 4.0 percent. A 1.1 percent fall in costs for durable goods also impacted the slowdown in overall inflation.

Meanwhile, utility costs continued to increase sharply by 13.3 percent compared to last year.

Netting out the effects of all the government's one-off relief measures, underlying inflation was 1.1 percent versus 1.3 percent in December.

The average monthly rate of increase for the 3-month period ending in February was 0 percent.

Looking ahead, overall inflation should remain moderate in the near term," a government spokesman said.

"Domestic cost pressures might increase somewhat as the economy continues to grow, while external price pressures should remain broadly in check, though uncertainties stemming from geopolitical tensions and trade conflicts continue to warrant attention."