Hong Kong inflation grows by 2.4% in December

This is significantly larger than the 1.8% growth in November.

Overall consumer prices in Hong Kong rose 2.4% year-on-year (YoY) in December 2021, larger than the 1.8% growth in November, according to the Census & Statistics Department.

Netting out the effects of the government’s one-off relief measures, December’s underlying inflation rate went up 1.4% compared to a year earlier, also larger than the 1.2% recorded in November.

Price increases were seen in electricity, gas and water, clothing and footwear, transport, meals out and takeaway food, durable goods, basic food, miscellaneous services and alcoholic drinks, and tobacco.

On the other hand, YoY decreases in miscellaneous goods and housing were recorded.

The government said that it noted that the rising underlying inflation rate was mainly due to the enlarged increases in costs for meals out and takeaway food as well as electricity charges.

In the fourth quarter of 2021, the underlying inflation rate rose 2% over a year earlier. For 2021 as a whole, the underlying inflation rate was 1.6% higher than the preceding year.

The government also said that external price pressures may increase further amidst elevated global inflation and the pandemic-induced logistics disruptions.

However, as the latest wave of the local epidemic has weighed on some consumption-related activities and domestic cost pressures remain limited, the underlying inflation should stay broadly in check in the near term.