Inflation Up 5.7% In HK

by Mary Swire, for LawAndTax-News.com, Hong Kong

25 June 2008

Overall consumer prices rose 5.7% in May over the same month last year, Hong Kong's Census & Statistics Department announced last week.

The underlying inflation rate was 5.7% compared to April's 5.4%, mainly due to hikes in housing rent, charges for package tours and the cost of meals bought away from home.

Analysed by sub-index, the year-on-year rates of increase in the headline CPI(A), CPI(B) and CPI(C) were 5.6%, 5.8% and 5.5% in May, compared to 5.5%, 5.5% and 5.2% in April.

Netting out the effect of the rates concession, year-on-year increases in the CPI(A), CPI(B) and CPI(C) were 5.6%, 5.8% and 5.6% in May, compared to 5.5%, 5.5% and 5.3% in April, the Department stated.

Large year-on-year price increases were recorded for food, with pork up 56.8%, beef 50%, canned meat 45.7%, rice 39.9%, edible oils 36%, other meat 30.5% and fresh-water fish 23%.

Year-on-year price increases were also recorded for electricity, gas and water; meals bought away from home; housing; miscellaneous goods; transport; clothing and footwear; and, alcohol and tobacco.

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