HK Apr Overall Consumer Prices Rise 1.7% YoY, vs Market Forecast of 1.9%

According to the Census and Statistics Department, Hong Kong's Composite Consumer Price Index (CPI) rose 1.7% YoY in April, the same increase as in March and below the market expectation of a 1.9% rise. Netting out the effects of all government one-off relief measures, the underlying inflation rate (i.e. core inflation) was 1.6% YoY in April, unchanged from March.Analysed by sub-index, the CPI(A), CPI(B) and CPI(C) recorded YoY increases of 1.6%, 1.8% and 1.7% respectively in April, compared with corresponding increases of 1.6%, 1.8% and 1.8% in March. After excluding the effects of all government one-off relief measures, the YoY increases in April were 1.4%, 1.7% and 1.6% respectively, compared with 1.4%, 1.6% and 1.7% in March.Among the components of the Composite CPI, categories recording YoY price increases in April included electricity, gas and water (up 5.5%), miscellaneous services (up 4.5%), transport (up 4.3%), miscellaneous goods (up 2.6%), alcoholic drinks and tobacco (up 2.3%), housing (up 1%), meals out and takeaway food (up 0.8%), and basic food (up 0.5%).On the other hand, categories recording YoY price declines in April were durable goods (down 1.9%) and clothing and footwear (down 0.3%).A government spokesperson said that price increases for fuel-related items accelerated further, while price pressures for other major components remained contained, keeping overall inflation moderate. Looking ahead, as international oil prices remain elevated, the pass-through effects on various fuel-related components in consumer prices are expected to persist in the coming months. The ultimate impact will depend on developments in the Middle East situation. Nevertheless, price pressures from other sources are generally contained, which should help alleviate potential upward pressure on overall inflation. The government will continue to closely monitor developments and take further actions as appropriate to maintain price stability. (jl/da)