September 2024 Consumer Prices Rise 2.2%, Underlying Inflation Rate Drops to 0.9% in Hong Kong

Consumer Price Indices for September 2024

The Census and Statistics Department (C&SD) released today (October 22) the Consumer Price Index (CPI) figures for September 2024. According to the Composite CPI, overall consumer prices rose by 2.2% in September 2024 over the same month a year earlier, smaller than the corresponding increase (2.5%) in August 2024. Netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in September 2024 was 0.9%, also smaller than that in August 2024 (1.2%). The smaller increases were mainly due to the higher base of comparison resulting from the significant increases in food prices in September 2023.

On a seasonally adjusted basis, the average monthly rate of increase in the Composite CPI for the 3-month period ending September 2024 was 0.4%, and that for the 3-month period ending August 2024 was 0.6%. Netting out the effects of all Government's one-off relief measures, the corresponding rates of increase were 0.1% and 0.2%.

Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 2.9%, 2.0% and 1.6% respectively in September 2024, as compared to 3.2%, 2.2% and 1.9% respectively in August 2024. Netting out the effects of all Government's one-off relief measures, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 0.9%, 0.9% and 1.0% respectively in September 2024, as compared to 1.1%, 1.2% and 1.3% respectively in August 2024.

On a seasonally adjusted basis, for the 3-month period ending September 2024, the average monthly rates of increase in the CPI(A), CPI(B) and CPI(C) were 0.5%, 0.4% and 0.3% respectively. The corresponding rates of increase for the 3-month period ending August 2024 were 0.8%, 0.5% and 0.4% respectively. Netting out the effects of all Government's one-off relief measures, the average monthly rates of increase in the seasonally adjusted CPI(A), CPI(B) and CPI(C) for the 3-month period ending September 2024 were all 0.1%, and the corresponding rates of increase for the 3-month period ending August 2024 were 0.2%, 0.1% and 0.2% respectively.

Amongst the various components of the Composite CPI, year-on-year increases in prices were recorded in September 2024 for alcoholic drinks and tobacco (21.4%), electricity, gas and water (6.5%), housing (3.3%), miscellaneous services (2.0%), meals out and takeaway food (1.8%), miscellaneous goods (1.2%), and transport (1.0%).

On the other hand, year-on-year decreases in the components of the Composite CPI were recorded in September 2024 for clothing and footwear (-1.6%), basic food (-0.4%), and durable goods (-0.4%).

Taking the first 9 months of 2024 together, the Composite CPI rose by 1.9% over a year earlier. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.2%, 1.7% and 1.6% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.0%, 0.9%, 1.1% and 1.2% respectively.

In the third quarter of 2024, the Composite CPI rose by 2.4% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 3.1%, 2.1% and 1.9% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.1%, 1.0%, 1.1% and 1.2% respectively.

For the 12 months ending September 2024, the Composite CPI was on average 2.0% higher than that in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.4%, 1.9% and 1.8% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.2%, 1.0%, 1.2% and 1.4% respectively.

Commentary

A Government spokesman said that underlying consumer price inflation remained modest in September. The year-on-year increase in food price eased, while prices of energy-related items declined at a narrowed rate. Price pressures on other major components remained broadly in check.

Looking ahead, overall inflation should stay mild in the near term. The continued growth of the Hong Kong economy could pose some moderate upward pressures on domestic cost. Meanwhile, external price pressures should ease further, though uncertainties in the external environment remain. The Government will continue to monitor the situation.

Further information

The CPIs and year-on-year rates of change at section level for September 2024 are shown in Table 1. The time series on the year-on-year rates of change in the CPIs before and after netting out the effects of all Government's one-off relief measures are shown in Table 2. For discerning the latest trend in consumer prices, it is also useful to look at the changes in the seasonally adjusted CPIs. The time series on the average monthly rates of change during the latest 3 months for the seasonally adjusted CPIs are shown in Table 3. The rates of change in the original and the seasonally adjusted Composite CPI and the underlying inflation rate are presented graphically in Chart 1.

More detailed statistics are given in the "Monthly Report on the Consumer Price Index". Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1060001&scode=270).

For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD (Tel: 3903 7374 or email: cpi@censtatd.gov.hk).

Public rental housing applicant sentenced to imprisonment for making false statement

A public rental housing (PRH) tenant was sentenced to a total of 30 days' imprisonment for not declaring Hong Kong domestic property ownership in the PRH application, contrary to the Housing Ordinance. The PRH unit concerned has been recovered.

A spokesman for the Housing Department (HD) today (October 22) reminded PRH residents and applicants to truthfully declare their income and assets.

The PRH tenant did not declare her ownership of domestic property in Hong Kong in two declaration forms submitted to the HD in 2018 and 2019 for PRH application, and thereby succeeded in obtaining a PRH unit in Shek Mun Estate.Subsequent investigation revealed that she owned a domestic property in Yuen Long and she would not be eligible for PRH application.

The tenant was prosecuted by the HD for knowingly making a false statement in respect of her PRH application, contrary to Section 26(1)(c) of the Housing Ordinance.She was convicted in the Shatin Magistrates' Courts earlier and was adjourned for sentence yesterday.Having considered the gravity of the offence and the precious PRH resources involved, the presiding magistrate considered that it was not suitable to make a community service order.She was sentenced ­to 20 days' imprisonment for each of the two summonses, with 10 days to be run concurrently. Thus, she was sentenced to a total of 30 days' imprisonment. Additionally, the HD recovered the PRH unit in May this year.

The spokesman reminded all PRH applicants that if they were convicted by the court for making false statement knowingly during PRH application, contrary to Section 26(1)(c) of the Housing Ordinance, the maximum penalty is a fine of $50,000 and imprisonment for six months.The PRH application concerned will be cancelled, while any allocated PRH unit will be recovered by the HD.

The spokesman reiterated that, in general, the public recognises the HD's efforts in combating the abuse of public housing resources. The HD will continue to adopt multipronged and risk-based measures to comprehensively combat the abuse of PRH.