Hong Kong's overall consumer prices increased by two percent year on year in May, up from the 1.7 percent annual rise in April and marking the highest growth rate in about a year.

Figures released by the Census and Statistics Department on Tuesday also showed that the underlying inflation rate, or the annual increase after taking out the effects of all one-off government relief measures, stood at 1.9 percent, compared with the 1.6 percent increase in April.

The government noted in a statement that the latest increase was mainly due to the accelerated price spikes in inbound and outbound transport fares, charges for package holidays, as well as those for health services.

"Looking ahead, while the recent de-escalation of geopolitical tensions in the Middle East has contributed to a decline in international oil prices, the earlier surge in oil prices will continue feeding through to fuel-related components of consumer prices in the coming months," a government spokesman warned.

"Meanwhile, price in other areas remain largely stable, which should help keep overall inflation moderate."

By categories, prices for electricity, gas and water saw the largest increases in May, jumping 6.6 percent year on year, while that for transport increased by 5.1 percent and that for alcoholic drinks and tobacco rose by 2.5 percent.

On the other hand, prices for durable goods declined by 1.2 percent year on year.

Taking the first five months of the year together, overall consumer prices rose by 1.7 percent compared with the same period a year ago.


Edited by Edmond Fong