The Zhitong Finance App learned that on March 21, the Hong Kong Government Statistics Department announced the consumer price index for February 2024. According to the Composite Consumer Price Index, overall consumer prices in February 2024 increased by 2.1% compared to the same month a year ago, which is higher than the corresponding increase (1.7%) in January 2024. Excluding the impact of all one-time relief measures by the Hong Kong Government, the composite consumer price index increased by 1.2% year-on-year (i.e., the basic inflation rate) in February 2024, which is also higher than January 2024 (0.8%). The year-on-year increase is mainly due to the rise in food prices due to the impact of the Lunar New Year.
It is important to note that consumer prices in the first two months of each year generally fluctuate depending on the time of the Lunar New Year. Since this year's Lunar New Year is in February, and last year was in January, the year-to-year comparison of January and February 2024 numbers may be affected to some extent. Based on the combined calculation for the first two months of 2024 to eliminate the impact of the Lunar New Year, the composite consumer price index rose 1.9% from the same period a year ago. Excluding the impact of all one-time government relief measures, the corresponding increase was 0.9%.
The seasonally adjusted composite consumer price index has an average monthly change rate of 0.0% for the three months ending February 2024, which is the same as the corresponding rate of change for the three months ending January 2024. Excluding the impact of all government one-time relief measures, the corresponding change rate was 0.0%.
According to the segmented index analysis, the year-on-year increases of the A, B and C consumer price indices in February 2024 were 2.3%, 2.0% and 2.0% respectively, while the corresponding increases in January 2024 were 2.0%, 1.6% and 1.5%, respectively. Excluding the impact of all one-time government relief measures, the year-on-year increases of 0.8%, 1.2% and 1.6% in February 2024 were 0.8%, 1.2% and 1.6% respectively, while increases in January 2024 were 0.5%, 0.8% and 1.0%, respectively.
The year-on-year increases of the Consumer Price Indices for Class A, Class B and Class C were 2.2%, 1.8% and 1.8%, respectively, when calculated for the first two months of 2024. Excluding the impact of all one-time government relief measures, the corresponding increases were 0.6%, 1.0% and 1.3%, respectively.
The seasonally adjusted consumer price indices for categories A, B and C had average monthly changes of -0.1%, 0.0% and 0.1% for the three months ended February 2024, while the corresponding changes for the three months ended January 2024 were -0.1%, 0.0% and 0.0%, respectively. Excluding the impact of all one-time government relief measures, the average monthly change rates of the seasonally adjusted consumer price indices for the three months ended February 2024 were 0.0%, 0.0% and 0.1%, respectively, while the corresponding change rates for the three months ended January 2024 were -0.1%, 0.0% and 0.0%, respectively.
Among the various composite consumer price index components, the categories that recorded year-on-year increases in prices in February 2024 were tobacco and alcohol (up 6.1%), dining out and takeout (up 3.6%), miscellaneous services (up 3.6%), housing (up 3.0%), transportation (up 2.3%), clothing (up 1.3%), and miscellaneous goods (up 1.0%).
On the other hand, the composite consumer price index recorded year-on-year declines in February 2024 in the categories of electricity, gas and water (down 7.8%), durable goods (down 1.4%), and basic foodstuffs (down 0.1%).
In the three months ended February 2024, the composite consumer price index increased by 2.1% compared to the same period a year ago, while the consumer price indices for categories A, B and C increased by 2.4%, 2.0% and 1.9% respectively. Excluding the impact of all one-time government relief measures, the corresponding increases were 1.1%, 0.8%, 1.1% and 1.5%, respectively.
For the 12 months ended February 2024, the composite consumer price index increased by an average of 2.1% compared to the same period a year ago. The corresponding increases of 2.3%, 2.0% and 2.0% for category A, B and C consumer price indices were respectively. Excluding the impact of all one-time government relief measures, the corresponding increases were 1.5%, 1.5%, 1.5% and 1.7%, respectively.
A Hong Kong government spokesman said that the basic consumer price inflation rate will remain moderate in the first two months of 2024. Although prices for meals out and takeout continued to record relatively rapid increases, the prices of basic foodstuffs declined year by year. Prices for energy-related projects have declined further. The price pressure on other major component projects remains largely under control.
Looking ahead, overall inflation should remain moderate in the short term. Although local costs may face some upward pressure as Hong Kong's economy continues to grow, peripheral price pressure should ease further. The Government will continue to monitor the situation.