Hong Kong's May Composite CPI rose by 1.2% year-on-year

According to the Zhītōng Finance and Economics APP, on June 21, the Hong Kong Census and Statistics Department announced the Consumer Price Index for May 2024. Based on the Composite Consumer Price Index, the overall consumer prices in May 2024 increased by 1.2% compared to the same month a year ago, slightly higher than the corresponding increase in April 2024 (1.1%). Excluding the impact of all one-off relief measures by the government, the year-on-year increase in the Composite Consumer Price Index in May 2024 (i.e., the basic inflation rate) was 1.0%, also slightly higher than in April 2024 (0.9%).

The seasonally adjusted Composite Consumer Price Index showed an average monthly change rate of -0.2% for the three months ending in May 2024, the same as the corresponding rate for the three months ending in April 2024. Excluding the impact of all one-off relief measures by the government, the corresponding change rates were 0.1% and 0.0%.

In terms of sub-index analysis, the Class A, Class B, and Class C Consumer Price Indexes saw year-on-year increases of 1.2%, 1.1%, and 1.2% respectively in May 2024, compared to the corresponding increases of 1.1%, 1.0%, and 1.1% in April 2024. Excluding the impact of all one-off relief measures by the government, the year-on-year increases for Class A, Class B, and Class C Consumer Price Indexes in May 2024 were 0.9%, 1.1%, and 1.2% respectively, compared to the increases in April 2024 of 0.8%, 1.0%, and 1.1%.

The seasonally adjusted Class A, Class B, and Class C Consumer Price Indexes showed average monthly change rates of -0.3%, -0.2%, and -0.1% respectively for the three months ending in May 2024, while the corresponding rates for the three months ending in April 2024 were -0.3%, -0.2%, and 0.0%. Excluding the impact of all one-off relief measures by the government, for the three months ending in May 2024, the seasonally adjusted average monthly change rates for Class A, Class B, and Class C Consumer Price Indexes were 0.2%, 0.1%, and 0.0%, compared to the corresponding rates for the three months ending in April 2024 of 0.1%, 0.0%, and 0.1%.

Among the various components of the Composite Consumer Price Index, the categories that recorded year-on-year increases in May 2024 were tobacco and alcohol (up 20.1%), dining out and takeout (up 3.0%), transportation (up 2.3%), miscellaneous services (up 2.2%), miscellaneous goods (up 1.2%), clothing and footwear (up 1.1%), and housing (up 1.1%).

On the other hand, the categories that saw year-on-year decreases in the Composite Consumer Price Index in May 2024 were electricity, gas, and water (down 10.9%), as well as durable goods (down 0.9%).

As for basic food items, the Composite Consumer Price Index for May 2024 remained unchanged compared to the same period a year ago As of the first five months of 2024, the composite consumer price index rose by 1.6% compared to the same period a year ago. The corresponding increases in Class A, Class B, and Class C consumer price indices were 1.8%, 1.5%, and 1.5% respectively. Excluding the impact of all one-off government relief measures, the corresponding increases were 1.0%, 0.7%, 1.0%, and 1.2%.

For the three months ending in May 2024, the composite consumer price index increased by 1.4% compared to the same period a year ago, with Class A, Class B, and Class C consumer price indices rising by 1.6%, 1.3%, and 1.3% respectively. Excluding the impact of all one-off government relief measures, the corresponding increases were 1.0%, 0.8%, 1.0%, and 1.2%.

Over the twelve months ending in May 2024, the composite consumer price index averaged a 1.9% increase compared to the same period a year ago, with Class A, Class B, and Class C consumer price indices increasing by 2.2%, 1.8%, and 1.8% respectively. Excluding the impact of all one-off government relief measures, the corresponding increases were 1.3%, 1.2%, 1.3%, and 1.5%.

A spokesperson for the Hong Kong SAR Government stated that the basic consumer price inflation rate in May remained mild. Prices for dining out and takeaways continued to rise rapidly year-on-year, while prices for basic food items remained largely unchanged. Prices for energy-related items further significantly declined. Price pressures on other major components remained broadly under control.

Looking ahead, overall inflation is expected to remain at a manageable level in the short term. Local cost pressures in Hong Kong may increase as the economy continues to grow. External price pressures are expected to continue to slow down, although geopolitical tensions may bring uncertainties. The Hong Kong SAR Government will continue to monitor the situation