Sept sees 2.2% deflation

2020-10-24 14:00:23

Overall consumer prices in September fell 2.2% year-on-year, larger than the corresponding decrease of 0.4% in August, the Census & Statistics Department announced today.

Netting out the effects of the Government's one-off relief measures, the year-on-year increase in September?s underlying inflation rate was 0.5%, larger than August's 0.1%.

The department said the increase in September was mainly due to the rising cost for meals bought away from home and the upward adjustment in public housing rentals.

September saw year-on-year price drops for electricity, gas and water, clothing and footwear, housing, durable goods and transport, while prices for food, excluding meals bought away from home, miscellaneous goods, alcoholic drinks and tobacco, meals bought away from home and miscellaneous services went up.

The Government said the enlarged year-on-year decline in headline consumer prices in September mainly reflected the waiver of public housing rentals for that month by the Housing Authority.

Prices of meals bought away from home resumed a year-on-year increase as the local epidemic situation stabilised in the month. Meanwhile, price pressures on other major Consumer Price Index components remained tame.

Looking ahead, overall inflationary pressures should stay mild for the rest of the year as global and local economic conditions remain weak amid the threat of COVID-19, the Government added.

Read Full Article