Consumer prices up 5.7%

January 20, 2012

Overall consumer prices rose 5.7% in December year on year. Netting out the effects of all the Government's one-off relief measures, the year-on-year rate of increase in the Composite Consumer Price Index was 6.4%.
 
The Census & Statistics Department said today underlying inflation held stable at a year-on-year rate of 6.4% for the fourth consecutive month.
 
Food prices and private housing rents remained the largest contributors to inflation, accounting for more than 75% of the underlying inflation in that month.
 
For 2011 as a whole, underlying consumer price inflation averaged 5.3%, the same as the Government's earlier forecast.
 
On a seasonally adjusted basis, the average monthly rate of increase in the Composite Consumer Price Index for the October-December period was 1.2%, the same as that for September-November.
 
Netting out the effects of the Government's one-off relief measures, the average monthly rate of increase in the Composite Consumer Price Index for October-December was 0.4%, the same as that for September-November.
 
Year-on-year increases in prices were recorded in December for alcohol and tobacco (20.3%), food (excluding meals bought away from home) (11.5%), housing (8.5%), clothing and footwear (6.1%), meals bought away from home (6%), transport (4.4%), miscellaneous services (3.8%) and miscellaneous goods (3.6%).
 
Year-on-year falls were recorded for electricity, gas and water (-16.7%) and durable goods (-3%).
 
For 2011, the Composite Consumer Price Index was on average 5.3% higher than in the preceding year.
 
The department forecast price pressures on both the external and domestic fronts are likely to ease this year, alongside the recent retreat of global food and commodity prices as well as the slowing growth momentum of the local economy.
 
The Government will closely monitor local inflation, particularly its impact on lower-income people.