Consumer prices in April rose 5.4% over the same month last year, and were up on March's 4.2% rise, the Census & Statistics Department says. The rise was mainly due to the enlarged increases in vegetable prices and the fuel cost variation charge for Towngas.

The headline inflation rate of 5.4% in April was the same as the underlying rate because the effect of the rates concession was offset by a similar relief measure in April last year. April's underlying rate was marginally higher than March's 5.3% figure.

The pick-up in inflationary pressure in recent months was largely due to the upsurge in food prices, which was driven by global food inflation. Sustained strong economic growth also added pressure on prices and costs.

On the rise: Consumer prices in April rose 5.4% over the same month last year. Financial Secretary John Tsang meets locals during his visit to Wong Tai Sin and Sha Tin.

Uncertain outlook

The department said the inflation outlook is uncertain and will hinge much on the movement of food prices in international markets, which are expected to be volatile.

Elevated international oil prices, exchange rate movements and local economic strength are also likely to continue to exert inflationary pressure. Nevertheless, the various relief measures announced in the 2008-09 Budget and sustained labour productivity growth should help cushion inflation.

April saw year-on-year increases in the price of food (excluding meals bought away from home) at 19.4%. Foods with large price hikes were pork (59.3%), beef (51.4%), canned meat (44.5%), other meat (33%), edible oils (29%), rice (24.5%) and frozen meat (20.2%).

Year-on-year increases were also recorded in electricity, gas and water (8.7%), meals bought away from home (6%), housing (5.5%), miscellaneous goods (5.2%), clothing and footwear (1.4%), alcohol and tobacco (0.2%), transport (2%), and miscellaneous services (0.6%). A year-on-year fall was recorded for durable goods (3.1%).

Relief measures

Financial Secretary John Tsang said he understands the impact of price rises on low-income residents. Although the relief measures outlined in his Budget will have negligible effects on inflation, they will benefit the whole community, he added.

Visiting Wong Tai Sin on May 21 and Sha Tin on May 19 Mr Tsang talked to residents, market stall operators and shop owners who expressed the difficulties they have encountered as a result of recent price rises.

"I am also wary of inflation. That is why I announced in my Budget a package of relief measures that will have negligible effects on inflation but at the same time will benefit all strata of the community.