Hong Kong's consumer prices rose 1.4 percent in February compared to a year ago, down from 2.0 percent in January, the Census and Statistics Department said Thursday.

Netting out the effects of the SAR government’s one-off relief measures, February’s underlying inflation rate was 1.1 percent, also smaller than 1.6 percent recorded in January.

The smaller increase in February was mainly due to the high base of comparison stemming from the Chinese New Year falling in February last year, in particular food prices and the charges for package tours, the department said.  

Prices of alcoholic drinks and tobacco rose 20.9 percent, followed by electricity, gas and water, which went up 13.3 percent.

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Transport, housing, miscellaneous goods, meals out and takeaway food, and miscellaneous services also saw price increases.

On the other hand, year-on-year decreases were recorded for basic food, clothing and footwear, and durable goods.  

Taking the first two months of 2025 together to neutralize the distortions by Chinese New Year, the composite consumer price index rose 1.7 percent from a year earlier.

Netting out the effect of all SAR government's one-off relief measures, the corresponding increase was 1.3 percent, same as the increase in Dec 2024.

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An SAR government spokesman said that the underlying consumer price inflation stayed modest in early 2025.

Looking ahead, he said overall inflation should remain moderate in the near term while domestic costs pressures might increase somewhat as the economy continues to grow.

External price pressures should remain broadly in check, though uncertainties stemming from geopolitical tensions and trade conflicts continue to warrant attention, he added.