HK inflation stays moderate in August

In August, Hong Kong's inflation remained moderate, with overall consumer prices increasing by 1.7 percent compared to the previous year, matching the figure from July. The underlying inflation rate, which excludes one-off government relief measures, also rose by 1.9 percent year-on-year, similar to the previous month. The cost of utilities such as electricity, gas, and water saw the highest year-on-year increase of 11.5 percent in August.

Transport fares climbed by 3.9 percent, while meals and takeaway food prices rose by 1.1 percent. Despite fuel-related items still experiencing high inflation, price pressures in other areas are largely contained, according to a government spokesperson. "Inflation of fuel-related items remains high, but price pressures on other components are broadly in check," the spokesperson noted.

"Looking ahead, consumer price inflation will remain under upward pressure due to elevated international oil prices affecting fuel-related components." The spokesperson emphasized that recent tensions in the Middle East pose a significant uncertainty and require close monitoring. However, they remain optimistic that overall inflation will stay moderate as price pressures on other fronts are expected to remain largely contained.