Consumer price up on pork, rent
Updated: 2007-08-22 07:11
By Teddy Ng(HK Edition)
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The Census and Statistics Department yesterday said that consumer price for July has increased by 1.5 percent from the same period last year, after a 1.3 percent increase was recorded in June.
The increase was because of the rising prices of pork, private housing rents and catering.
The faster year-on-year rise in pork prices from 13.2 percent in June to 25 percent last month has contributed to 0.12 percent increase in the consumer price rise.
Food costs have increased by 5.8 percent from a year earlier. Besides pork, eggs price has gone up by 22.7 percent. The price of frozen meat has been increased by 12.4 percent, followed by other meat (9.5 percent), edible oils (9.1 percent) and canned meat (9 percent). The cost of eating in restaurant has also increased by 2.2 percent.
Price rise in other items included clothing and footwear products (5.1 percent); miscellaneous goods (2.1 percent) and miscellaneous services (1.9 percent). The cost of housing is increased by 1.2 percent.
A government spokesman said the increase of food prices would cause inflation in the near term. However, measures, such as rate concession and the reduction in public housing rents, would halt the trend in the coming months.
Analysts and restaurant owners expected the consumer price would continue to increase because of the rise in raw material imported from mainland and the appreciation of Renminbi, which had gained 3.4 percent against Hong Kong dollar.
Stronger economic outlook, which the government has increased the forecast of economic growth by 0.5 percentage to between five and six percent, had pushed up consumer spending.
Hong Kong Federation of Restaurants and Related Trades president Simon Wong Ka-wo said operating cost had increased by more than 10 percent.
The price of a set lunch in Wong's restaurant has increased from HK$48 to HK$52 three months ago and further to HK$60 two weeks before.
"Not only pork, but the price of beef and eggs is also on the rise. An increase of HK$12 for a set lunch in three months is very significant," he added.
Bank of East Asia chief economist Paul Tang Sai-on said inflation would accelerate in the near future.
"The rising cost of food and housing is obvious. Pressure on inflation would be more significant," he added.
(HK Edition 08/22/2007 page6)