Hong Kong's inflation rate slightly rose in March, with the Composite Consumer Price Index up two percent on a year earlier.

That compared to the 1.9 percent inflation rate in the previous two months.

Figures released by the Census and Statistics Department showed that underlying inflation, stripping out short-term relief measures, was also up marginally in March, at one percent.

Alcohol and tobacco prices surged nearly 18 percent year-on-year, while meals out and takeaways were up 3.3 percent and housing costs rose 3.1 percent.

Electricity, gas and water prices dropped 8.7 percent.

A government spokesperson said the underlying price inflation was “modest” in March, noting that prices of basic foods edged down.

“Looking ahead, overall inflation should stay contained in the near term. Domestic costs may face some upward pressures as the Hong Kong economy continues to grow. External price pressures should remain on a broad downward trend, though heightened geopolitical tensions will bring uncertainties,” the spokesperson added.

For the first quarter of 2024, overall consumer prices rose 1.9 percent year-on-year.