Hong Kong food inflation dropped to 3.7%

But housing inflation has been constant.

According to DBS, the CPI for March came in at 3.6% YoY, slightly lower than the average rate of increase in January and February 2013 (3.7%). 

Component-wise, overall food inflation fell to 3.7% from the average rate of 4.4% in January and February, mainly due to the decrease in the prices of fresh vegetables.

Here's more from DBS:

While food inflation has trended down since exactly a year ago, housing inflation has been more or less constant in the past six months despite two rounds of government intervention in October 2012 and February 2013.

In March, the housing component of the CPI rose 5.2%. Private residential rents are taking a breather (HK$22.9/sqft in both February and March) after rising for 12 months straight. 

However, the rise will probably resume as government clampdowns on the property market encourage some potential buyers to rent for the time being.

The pace of rental inflation in the next few months may even exceed property price inflation, putting upward pressure on the CPI. As expected, transport inflation has picked up in March as the 4.9% bus fare hike in mid-March added inflationary pressure. Upward revision in the minimum wage to $30 per hour from $28 will be effective in May, adding further inflationary risks.