Inflation hits 4.1% in 2012

Government, however, says inflationary pressures being contained.

The Census and Statistics Department also said inflation rose by 3.7% in December year-on-year, which is similar to the inflation rate in November. After netting out the effects of the government's one-off relief measures, the year-on-year rate of increase in the inflation rate in December was 3.8%, also matching November's figure.

For 2012 as a whole, inflation was on average 4.1% higher than in the preceding 12-month period. The corresponding increases after netting out the effects of all Government's one-off relief measures were 4.7%.

The government said international food and commodity prices' volatility amid the global liquidity glut, and the pick-up in local housing rentals since the early part of 2012, may pose some upside risks to inflation.

The government will continue to monitor the inflation situation, particularly its impact on lower-income people.