Hong Kong's overall consumer prices fell 0.5 percent in January compared with the same month last year, the Census and Statistics Department said on Tuesday.

It attributes the drop to the higher base of comparison in January 2004 caused by the Lunar New Year Festival.

The department said prices in January this year were less affected by the Lunar New Year which fell in February. This led to renewed year-on-year declines in the charges for package tours and inbound and outbound transport fares in January.

The department said the year-on-year fall in the Composite Consumer Price Index is likely to be only temporary as prices of many items such as clothing and footwear, food, electricity and gas still recorded increases and the decline in private housing rentals continued to narrow.

With continued strength in the economy and with rising retained import prices, a return of modest consumer price inflation is expected in the months ahead, said the department.

Source: Xinhua