Overall consumer prices rose 0.7% in June year-on-year, smaller than the 1% growth in May, the Census & Statistics Department announced today.

Netting out the effects of the Government’s one-off relief measures, June’s underlying inflation rate went up 0.4% on a year earlier, larger than the 0.2% recorded in May.

The Government said the rise was mainly due to the enlarged increases in the costs for meals out and takeaway food as well as the smaller decreases in proprietary medicine and supply prices.  

June saw year-on-year price increases for electricity, gas and water, clothing and footwear, transport, meals out and takeaway food, basic food, durable goods, miscellaneous services and alcoholic drinks and tobacco. On the other hand, year-on-year decreases in miscellaneous goods and housing were recorded.

The Government said prices of meals out and takeaway food as well as clothing and footwear showed widened year-on-year increases in June as the local epidemic situation continued to stabilise, helping to support consumption demand. Meanwhile, pressures on other major CPI components remained modest.

Looking ahead, while inflationary pressures may increase further in the near term alongside the economic recovery and rising import prices, overall inflation should remain largely contained as the local economy is still operating below capacity, it added.