HK inflation stays moderate in August

Hong Kong’s overall inflation situation remained moderate, with the city’s overall consumer prices rising by 1.7 percent in August year-on-year, the same as in July. The latest figures released by the Census and Statistics Department on Wednesday also showed that the underlying inflation rate – the rate netting out the effects of all government’s one-off relief measures – rose by 1.9 percent year-on-year, also the same as in the previous month. The cost of electricity, gas and water increased the most with a year-on-year rise of 11.5 percent in August, while the city saw a 3.9 percent increase in transport fares and 1.1 percent rise in the price of meals out and takeaway food. A government spokesman said while inflation of fuel-related items remained high, price pressures on other components were broadly in check, keeping overall inflation at a moderate level. “Looking ahead, consumer price inflation will remain under upward pressure, as elevated international oil prices continue to feed through to fuel-related components,” the spokesman said. “The renewed escalation of tensions in the Middle East of late remains a key uncertainty and warrants close monitoring. “Yet, as price…