Hong Kong's Consumer Price Growth Slows in April, Dining Costs Rise

In April, Hong Kong experienced a more moderate increase in consumer prices, rising at a rate of 1.1 percent compared to the same month last year. This marks a slowdown from the 2 percent increase observed in March. Notably, the cost of dining out and takeaway meals saw a more significant rise of 3.1 percent.

According to the Census and Statistics Department, this deceleration in the composite consumer price index (CPI) was primarily due to the government's rates concession implemented last month. Meanwhile, the CPI for electricity, gas, and water saw a substantial decrease, dropping 9.3 percent year-on-year. In contrast, the cost of alcoholic drinks and tobacco surged by 20.8 percent.

When excluding the impact of all government relief measures, the underlying inflation rate for April was just 0.9 percent, slightly below the 1 percent recorded in the previous month.

On a seasonally adjusted basis, the composite CPI remained stable over the three-month period ending in March 2024. Both the average monthly rate of change in the CPI and the rate excluding all one-time government measures saw no change during this period.

Looking forward, the department anticipates that domestic costs may rise due to ongoing economic growth. However, external price pressures are expected to continue their broad downward trend. Nonetheless, geopolitical tensions could introduce some uncertainties to these projections. 

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