Up a notch: Overall consumer prices in June rose 1.3% over a year earlier.

Overall consumer prices in June rose 1.3% over a year earlier, the Census & Statistics Department says. The larger year-on-year increase was mainly due to the enlarged increase in pork prices.

Year-on-year price rises were recorded for food (excluding meals bought away from home) (up 4.5%), clothing and footwear (4%), meals bought away from home (2%), miscellaneous services (1.9%), miscellaneous goods (1.8%) and housing (1%).

Year-on-year falls were recorded for durable goods (-4.5%), alcohol and tobacco (-2.4%), electricity, gas and water (-1.5%), and transport (-0.2%).

The department said rising food prices and their volatility will have a bigger effect on inflation in the near term. However, the rates concession for the third quarter and other one-off measures to be introduced later in the year will keep inflation down in the second half of the year.

Rapid labour productivity growth should provide some cushion against overall inflationary pressures.