CPI hike: January's consumer prices rose 3.2% on the same month last year, mainly due to food price rises.

January's overall consumer prices rose 3.2% over the same month last year, the Census & Statistics Department says.

The inflation was mainly due to rising prices of food taken at home and in restaurants. The rates concession, however, relieved and brought down the headline inflation.

The Mainland snowstorms caused disruptions in food supply last month and continued affecting food prices this month.

The recent build-up of inflationary pressures reflected strong consumption demand supported by vibrant economic growth over the past few years.

The sustained growth in labour productivity should help dampen the upside risk posed by global food inflation, elevated energy prices, appreciation of the renminbi, and the weakening of the Hong Kong dollar, while the upward trend in private housing rentals deserved monitoring.

Food inflation

Food, excluding meals bought away from home, saw the highest increase in prices at 15.6%.

Food items showing large price increases were pork (48.2%), beef (41.4%), canned meat (34.7%), other meat (22.7%), fresh vegetables (20.1%), frozen meat (18.6%), eggs (18.1%), oils (18%), rice (17.7%), poultry (17.2%) and other fresh sea products (16.8%).

January also saw year-on-year rises in electricity, gas and water (7%), meals bought away from home (4.8%), miscellaneous goods (4.1%), clothing and footwear (1.2%), and alcohol and tobacco (0.1%). The price of miscellaneous services also rose 1%.

The price of durable goods recorded a year-on-year decline of 3.4%.

For the quarter ending January the Composite Consumer Price Index rose 3.5% over a year earlier. For the 12 months ending January the index on average was 2.1% higher than in the preceding 12-month period.