Overall consumer prices rose 1.6% in August year-on-year, smaller than the 3.7% growth in July, the Census & Statistics Department announced today.

The Government said the climb in consumer prices in July was a result of the low base of comparison arising from the Government’s payment of public housing rentals and the Housing Society’s waiver of two-thirds of rent for tenants of Group B estates in July 2020.

Netting out the effects of the Government’s one-off relief measures, August’s underlying inflation rate went up 1.2% compared to a year earlier, higher than the 1% recorded in July.

Meanwhile, the rising underlying inflation rate was mainly due to the enlarged increases in the costs for meals out and takeaway food as well as electricity charges.

Compared with August last year, price increases were seen in electricity, gas and water, transport, clothing and footwear, meals out and takeaway food, durable goods, miscellaneous services and basic food. On the other hand, year-on-year decreases in miscellaneous goods, housing as well as alcoholic drinks and tobacco were recorded.

The Government commented that the underlying consumer price inflation rate went up slightly to 1.2% in August as the year-on-year increases in prices of some components such as meals out and takeaway food as well as clothing and footwear widened somewhat amid the stabilised local epidemic situation. Pressures on many other consumer price index components remained modest.

Looking ahead, while domestic and external price pressures may build up further in the near term alongside the economic recovery, the underlying inflation should remain largely moderate as the local economy is still operating below capacity, it added.