Hong Kong’s inflation rate eased in January, with consumer prices rising 1.7 percent year-on-year, down from 2.4 percent in December.

The Census and Statistics Department said that after netting out the government’s one-off relief measures, the underlying inflation rate was 0.8 percent, lower than the 1.4 percent in December.

Alcohol and tobacco prices in January were up 19.5 percent from a year earlier, while the cost of meals out and takeaways rose 3.1 percent.

But electricity, gas and water prices continued to decrease, dropping almost 8 percent.

A government spokesperson said the lower-than-expected increase in inflation was mainly due to the fact that Lunar New Year fell in January in 2023 but in February this year, resulting in a high base of comparison, particularly when it came to food prices.

The government added that the city's inflation rate is expected to remain moderate in the near future.