In January, the overall consumer price index in Hong Kong saw a year-on-year increase of 1.1%, with the core inflation rate at 1%

The Census and Statistics Department announced that in January this year, the overall consumer price index increased by 1.1% compared to the same month last year, lower than the corresponding increase of 1.4% in December last year, and also below the market expectation of a 1.2% year-on-year increase. Excluding the impact of all one-off government relief measures, the year-on-year increase in the composite consumer price index in January this year (i.e., the underlying inflation rate) was 1%, also lower than the 1.2% in December last year. The narrowing of the year-on-year increase in January this year was mainly due to the higher comparison base from last year's Lunar New Year occurring in January, particularly affecting transportation costs in and out of Hong Kong.

From the analysis of sub-indices, the year-on-year increases in the consumer price indices for Category A, Category B, and Category C in January this year were 1.3%, 1.2%, and 0.9%, respectively, while the corresponding increases in December last year were 1.5%, 1.3%, and 1.4%. Excluding the impact of all one-off government relief measures, the year-on-year increases in the consumer price indices for Category A, Category B, and Category C in January this year were 1%, 1%, and 0.9%, respectively, compared to 1%, 1.2%, and 1.4% in December last year.

Among the components of the composite consumer price index, the categories that recorded year-on-year increases in prices in January this year included electricity, gas, and water (up 3%), miscellaneous services (up 2.9%), tobacco and alcohol (up 2.7%), miscellaneous goods (up 2.3%), transportation (up 1.3%), housing (up 1.1%), and dining out and takeaways (up 1%).

On the other hand, the categories that recorded year-on-year declines in the composite consumer price index in January this year included durable goods (down 2.8%), clothing and footwear (down 2.3%), and basic food items (down 0.3%).

A government spokesperson stated that consumer price inflation remained mild in January this year, with the underlying composite consumer price index rising by 1% year-on-year. The increase was slower than the previous month, mainly due to the higher comparison base from last year, as the Lunar New Year fell at the end of January last year, while this year it is in mid-February. Price pressures for the main components generally continue to be well controlled.

Looking ahead, external price pressures are expected to remain moderate, while local costs may rise slightly as the Hong Kong economy continues to grow. However, overall inflation should remain mild in the short term