HK Jun CPI YoY Hike Expedites to 1.5%, Topping Forecast

　　The Census and Statistics Department (C&SD) released today (22nd) the Consumer Price Index (CPI) figures for June 2024. According to the Composite CPI, overall consumer prices rose by 1.5% in June 2024 over the same month a year earlier, larger than the corresponding increase (1.2%) in May 2024. Meanwhile, the market had projected to rise 1.2%. The larger increase in June 2024 was mainly due to the decrease in the Government's provision of electricity charges subsidy compared to the same month last year. Netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in June 2024 was 1%, the same as that in May 2024.

　　A Government spokesman said that underlying consumer price inflation stayed modest in June. Prices of meals out and takeaway food recorded relatively fast increases over a year earlier, while those of basic food saw modest growth. Prices of energy-related items continued to decrease visibly. Price pressures on other major components remained broadly in check.

　　Looking ahead, overall inflation should stay mild in the near term. Domestic cost may face some upward pressures as the Hong Kong economy continues to grow. Meanwhile, external price pressures should remain on a broad moderating trend, though geopolitical tensions may bring uncertainties. The Government will continue to monitor the situation.

　　AAStocks Financial News