Inflation edged up to the highest level in Hong Kong in half a year as price spikes for package tours and cross-border transport drove up overall consumer prices, according to latest government data.
Figures released by the Census and Statistics Department on Thursday showed that the composite consumer price index, a gauge measuring overall prices, rose by 1.4 percent year on year in December.
That was higher than market expectations and was more than the 1.2 percent annual rise seen a month earlier.
The underlying inflation rate, or the annual rate netting out the effects from all the government's one-off relief measures, stood at 1.2 percent, also larger than the 1 percent registered in November.
Transport saw a 4.3 percent increase in prices, miscellaneous services were up 2.3 percent, and alcoholic drinks and tobacco rose 2 percent.
The gains were held in check by price declines of 2.6 percent for durable goods, 1.7 percent for clothing and footwear and 1.6 percent for electricity, gas, and water.
Commenting on the figures, a government spokesman said consumer price inflation stayed modest last month, as the underlying inflation rose by 1.1 percent for the year, same as a year before.
"Price pressures on various major components remained generally contained. Looking ahead, overall inflation should stay modest in the near term, as domestic cost and external price pressures are still mild," he said.
For the whole year, overall consumer prices rose by 1.4 percent year on year.
