Hong Kong's inflation remained moderate in March, with the overall consumer price index rising by 1.4 percent year on year.

That was down from the 1.7 percent increase recorded in the January-February period, according to official data released by the Census and Statistics Department on Wednesday.

The combined period was to offset the effect caused by the different timing of the Lunar New Year holiday.

The smaller price spike last month was mainly caused by decreases in inbound and outbound transport fares as well as charges for package tours, a government statement reads.

Rounding out the effects of all one-off relief measures given by the government, the composite consumer price index, or the underlying inflation rate, stood at 1 percent last month.

That was also smaller than the 1.3 percent rise recorded in the first two months of the year.

While prices for electricity, gas and water saw the biggest increase, jumping 14 percent, that of clothing and footwear dropped the most, 2.8 percent.

Looking ahead, a government spokesperson said Hong Kong's overall inflation should remain modest in the short term with external price pressures "broadly in check" but noted that escalating trade conflicts could be a concern.