Hong Kong's CPI rose by 1.7% year-on-year and 2.4% month-on-month in January.

On February 22, the Census and Statistics Department of the Hong Kong government released the Consumer Price Index for January 2024. According to the Composite Consumer Price Index, the overall consumer prices in January 2024 increased by 1.7% compared to the same month a year ago, which was lower than the corresponding increase in December 2023 (2.4%). Excluding the impact of all one-off relief measures by the government, the annual increase in the Composite Consumer Price Index in January 2024 (i.e. the basic inflation rate) was 0.8%, also lower than December 2023 (1.4%). The narrowing of the annual increase in January 2024 was mainly due to the higher base caused by the Lunar New Year in January last year, especially in food prices. The seasonally adjusted Composite Consumer Price Index showed an average monthly change rate of 0.0% for the three months ending in January 2024, while the corresponding change rate for the three months ending in December 2023 was 0.4%. Excluding the impact of all one-off relief measures by the government, the corresponding change rates were 0.0% and 0.1%. In terms of the sub-indices, the annual increases in the Consumer Price Index for Category A, B, and C in January 2024 were 2.0%, 1.6%, and 1.5% respectively, compared to 2.7%, 2.2%, and 2.3% in December 2023. Excluding the impact of all one-off relief measures by the government, the annual increases in the Consumer Price Index for Category A, B, and C in January 2024 were 0.5%, 0.8%, and 1.0% respectively, compared to 1.1%, 1.4%, and 1.8% in December 2023. The seasonally adjusted Consumer Price Index for Category A, B, and C showed average monthly change rates of -0.1%, 0.0%, and 0.0% respectively for the three months ending in January 2024, while the corresponding change rates for the three months ending in December 2023 were 0.5%, 0.3%, and 0.3%. Excluding the impact of all one-off relief measures by the government, the average monthly change rates for the three months ending in January 2024 for the seasonally adjusted Consumer Price Index for Category A, B, and C were -0.1%, 0.0%, and 0.0% respectively, compared to 0.0%, 0.1%, and 0.1% for the three months ending in December 2023. In the various categories of the Composite Consumer Price Index components, the categories that recorded annual increases in January 2024 were tobacco and alcohol (up 19.5%), clothing and footwear (up 3.5%), dining out and takeaway (up 3.1%), housing (up 2.9%), miscellaneous services (up 2.2%), miscellaneous goods (up 1.9%), and transportation (up 1.8%). On the other hand, the categories with annual decreases in the Composite Consumer Price Index in January 2024 were electricity, gas, and water (down 7.6%), basic food items (down 2.3%), and durable goods (down 1.4%). For the three months ending in January 2024, the Composite Consumer Price Index increased by 2.2% compared to the same period a year ago, with the Consumer Price Index for Category A, B, and C increasing by 2.6%, 2.1%, and 2.0% respectively. Excluding the impact of all one-off relief measures by the government, the respective increases were 1.3%, 1.0%, 1.3%, and 1.6%. For the twelve months ending in January 2024, the Composite Consumer Price Index increased by an average of 2.0% compared to the same period a year ago, with the Consumer Price Index for Category A, B, and C increasing by 2.2%, 1.9%, and 2.0% respectively. Excluding the impact of all one-off relief measures by the government, the respective increases were 1.6%, 1.6%, 1.5%, and 1.7%. A spokesperson for the Hong Kong government stated that due to the base effect caused by the different timing of the Lunar New Year, the basic consumer price inflation in January was significantly slowed down. Therefore, after the data for February is available, analyzing the two together will provide a more effective evaluation of the situation. Prices for basic food items decreased annually due to the high base, while energy-related prices further decreased. Prices for dining out and takeaway and clothing and footwear saw relatively fast increases. Other major components continued to face price pressures that were generally under control. Looking ahead, inflation is expected to remain moderate in the short term. Local costs may face some upward pressure as the Hong Kong economy continues to grow. At the same time, external price pressures are expected to continue to ease.