Aug. 22, 2012 (China Knowledge) - Hong Kong
's composite consumer price index (CPI) rose 1.6% YoY last month, lower than the 3.7% increase in June, due largely to the government's payment of public housing rentals in the month, according to the latest report released by the Census and Statistics Department.
Excluding the effects of the government's one-off relief measures, the city's underlying inflation rate further fell to 4.2% in July from 4.5% in June.
Food prices in Hong Kong, which took up one-third of the total CPI, climbed 7.1% last month. The prices of housing, which have one-third weight in the total CPI, rose 6.6% YoY. Meanwhile, there were a YoY increase of 5.4% in the prices of meals bought away from home, 2.3% increase in transport, 2.2% increase in miscellaneous services and 2.4% increase in the prices of clothing and footwear and 3.4% increase in the prices of electricity, gas and water.
The prices of housing fell 2.2% YoY and the prices of durable goods fell 0.9% in July.
In the first seven months of this year, the composite CPI rose by 4.3% over a year earlier.
A government spokesman said that inflation is likely to recede in the coming months, given the more difficult economic environment and the deceleration of import prices.