Mild inflation: The composite consumer price index rose 1.8% in October over a year earlier.

The composite consumer price index rose 1.8% in October over a year earlier, up on September's 1.6% rise, the Census & Statistics Department says.

The larger year-on-year rise was mainly due to increases in private-housing rents and fresh vegetable prices.

Analysed by sub-index and on a year-on-year comparison, the CPI(A), CPI(B) and CPI(C) rose by 1.7%, 1.9% and 1.9% in October, up on September's corresponding increases of 1.5%, 1.7% and 1.7%.

Year-on-year increases in prices were recorded in October for electricity, gas and water (5%), miscellaneous goods (3.1%), food (excluding meals bought away from home) (2.7%), housing (2.2%), transport (2%), miscellaneous services (1.6%), clothing and footwear (1.4%), meals bought away from home (1.1%) and alcohol and tobacco (0.3%). Year-on-year price falls were recorded for durable goods (-1.8%).

For the year ending October, the Composite CPI was on average 0.8% higher than in the preceding 12-month period. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 1%, 0.9% and 0.7%.

Economy bounces back

The consumer price inflation picked up in October. The department said this reflects the reflation process, as local costs rise in tandem with the economic upturn.

Overall inflationary pressures are still modest compared with the robust pace of economic expansion.

Continued growth in production capacity brought about by rising productivity, coupled with the recent strengthening of the US dollar and the ease-back in oil prices, will help contain cost pressures in the economy.