Hong Kong June Inflation Rises 2% As Fuel Costs Jump

Hong Kong's composite consumer price index rose 2% year-on-year in June, unchanged from May and below market expectations, while underlying inflation also held steady at 1.9%, according to RTHK reported data from the Census and Statistics Department. By category, electricity, gas and water prices climbed 9.2% from a year earlier, transport costs rose 5.3% and housing increased 1.1%. Durable goods prices fell 1.1%, while basic food prices were 0.5% lower than a year ago. A government spokesperson said higher fuel-related prices continued to push inflation up, partly offset by relatively modest price pressures in other components. The spokesperson added that consumer price inflation is expected to rise in the coming months as earlier increases in international oil prices feed through, though recent easing in oil prices may offer some relief. The renewed escalation of tensions in the Middle East warrants close monitoring, the spokesperson said.