Hong Kong Inflation Eases Slightly To 2%

(RTTNews) - Hong Kong's consumer price inflation moderated unexpectedly in May, though marginally, data released by the Census and Statistics Department showed on Tuesday.

The consumer price index, or CPI, climbed 2.0 percent year-over-year in May, after a 2.1 percent increase in April. Economists had expected inflation to rise to 2.3 percent.

Utility costs alone grew 16.6 percent annually in April versus a 17.8 percent surge in the prior month. Costs for clothing and footwear were 5.8 percent more expensive. Food prices showed an increase of 2.6 percent.

Netting out the effects of all the government's one-off relief measures, the underlying inflation remained stable at 1.8 percent.

The average monthly rate of increase for the 3-month period ending in May was 0.1 percent.

"Looking ahead, overall inflation should stay moderate in the near term," a government spokesperson said.

"While domestic cost pressures may increase alongside the economic recovery, external price pressures will likely see some moderation though remaining notable."