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Hong Kong's CPI growth dips to 3 pct in Sept

(Xinhua)
Updated: 2008-10-23 21:45

HONG KONG -- Hong Kong's year-on-year consumer price growth dropped to 3 percent in September on the implementation of relief measures, the Hong Kong Special Administrative Region (HKSAR) government said Thursday.

The Census and Statistics Department said the headline inflation fell notably due to an electricity subsidy provided by the HKSAR government to households.

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The underlying inflation also dropped to 6.1 percent, mainly reflecting easing local food price increases and free senior secondary education. It was the first decline since mid-2007 when underlying inflation began to pick up, the department said.

Government relief measures have together lowered the year-on- year rate of increase in the composite consumer prices index by 3. 1 percentage points.

Food prices, excluding meals bought away from home, recorded a growth of 14.9 percent, with an increase of 59.3 percent for rice, 30.1 percent for freshwater fish, 28.3 percent for edible oils, 23 percent for beef, and 22.2 percent for pork.

For the first nine months, the composite consumer price index rose 5 percent year on year.

The Census and Statistics Department said it expected the retreat of food and energy prices in the international markets, the recent strength of the U.S. dollar, and weaker demand conditions should continue to reduce the upside risks to inflation in the coming months, while the relief measures will also help ease headline inflation.