Hong Kong Inflation Eases To 1.4%

(RTTNews) - Hong Kong's consumer price inflation moderated more-than-expected in June to the lowest level in three months, data released by the Census and Statistics Department showed on Monday.

The consumer price index, or CPI, climbed 1.4 percent year-over-year in June, slower than the prior month's 1.9 percent rise. The expected inflation rate was 1.5 percent.

The smaller increase was mainly due to the decrease in the government's provision of electricity charges subsidy in June compared to May last year, the agency said.

Housing costs alone grew 1.6 percent annually in June, and transport charges were 1.9 percent more expensive. Meanwhile, clothing and footwear prices dropped 4.1 percent.

Netting out the effects of all the government's one-off relief measures, underlying inflation held steady at 1.0 percent.

The average monthly rate of increase for the 3-month period ending in June was -0.1 percent.

"Looking ahead, overall inflation should remain modest in the near term, as pressures from domestic costs and external prices should stay broadly in check," a government spokesman said.