Consumer prices up 3.7%

Net inflation rose 3.7% in August year-on-year despite a respite from rent increases.

The Census & Statistics Department said the larger increase was mainly due to the difference in the timing of the government's payment of public housing rentals. These payments were made in July and August this year but in August and September last year.

Inflation this August, however, was lower than in July (4.2%) mainly due to the smaller increases in private housing rentals and the price of salt-water fish.

The government believes here should still be some room for inflation to ease further in the near-term despite the more difficult economic environment and more moderate increases in import prices.

It remains concerned by the recent rebound in world food and commodity prices in the midst of abundant global liquidity caused by huge stimulus measures in the United States, Japan and the European Union.