On the rise: Consumer prices rose 2.1% in September over the same month last year.

September saw a smaller year-on-year consumer price increase, with overall costs up 2.1% over the same month last year, down on the 2.5% rise in August, the Census & Statistics Department says.

The smaller rise was mainly due to smaller increases in the price of fresh vegetables, charges for telephone and other communications services, private housing rental, and the fuel cost variation charge for Towngas. Also relevant was the drop in the prices of motor fuel.

In September, price rises were recorded for housing (4.8%), electricity, gas and water (3.1%), food (excluding meals bought away from home) (2.3%), miscellaneous services (2.2%), clothing and footwear (2.0%), miscellaneous goods (1.8%) and meals bought away from home (1.3%).

Year-on-year falls in prices were recorded for durable goods (-6.7%), alcohol and tobacco (-4.0%) and transport (-0.1%).

Taking the first nine months of 2006 together, the Composite Consumer Price Index rose 2% over a year earlier.

For the three months ending September, the Composite CPI grew 2.3% over a year earlier. For the 12 months ending September, the Composite CPI was on average 1.8% higher than in the preceding 12 month period.

Inflation to stay moderate

Consumer price inflation is likely to stay moderate through to the end of the year on current indications, the department said.

While the recent weakening of the Hong Kong Dollar along with the US Dollar might give rise to some modest pick-up in imported inflation, the substantial fall-off in oil prices lately coupled with the sustained increase in productivity in Hong Kong should keep overall inflationary pressures in check.