Overall consumer prices rose 2.3% year-on-year in March, compared to the 1.8% average rate of increase in January and February, the Census & Statistics Department announced today.

Netting out the effects of the Government's one-off relief measures, the underlying inflation rate was 2.6%, smaller than the average rate of increase in January and February.

Year-on-year price increases were recorded for food (excluding meals bought away from home), miscellaneous goods, housing, meals bought away from home, transport and miscellaneous services.

Year-on-year decreases were recorded for electricity, gas and water, clothing and footwear, durable goods as well as alcoholic drinks and tobacco.

The Government said that the underlying consumer price inflation rate went down from 3.1% for January and February combined to 2.6% in March, as food inflation moderated slightly while price pressures on most other major Consumer Price Index components showed varying degrees of easing.

Inflation should remain moderate in the near term, it said, adding that domestic cost pressures have abated amid the austere local economic situation. External price pressures are expected to subside further in view of the global recession and the recent strengthening of the Hong Kong dollar along with the US dollar.