Hong Kong utility costs jump 11.5% as August inflation holds at 1.7%

The cost of electricity, gas and water in Hong Kong rose 11.5% year on year in August, standing out as overall consumer-price growth remained steady at 1.7%, the same rate as in July.

Underlying inflation, which excludes the effects of all government one-off relief measures, was 1.9% year on year, also unchanged from the previous month, according to the Census and Statistics Department’s latest figures.

Transport fares increased 3.9%, while prices for meals out and takeaway food rose 1.1%. The seasonally adjusted Composite Consumer Price Index increased by an average of 0.2% a month in the three months to August, matching the pace recorded in the three months to July.

A government spokesman said price pressures on fuel-related items remained high, while those affecting other components were broadly contained. He said elevated international oil prices would continue to push up fuel-related prices, with renewed tensions in the Middle East a key uncertainty. Overall inflation was expected to stay moderate as pressures elsewhere remained largely contained.