The Composite Consumer Price Index (CPI) rose 0.8 percent in May over a year earlier, and was also up on April's 0.5 percent increase, the Census & Statistics Department said in Hong Kong Thursday.

As the dragging effect of the earlier fall-offs in private housing rentals continues to wane, the CPI increase widened slightly in May.

But overall inflationary pressure remained modest, with prices of most commodity items recording only mild increases.

As consumer demand continues to strengthen, consumer prices are expected to edge up gradually in the months ahead.

The year-on-year fall in rentals has narrowed, but the increases in the charges for package tours and in the prices of jewelry and fresh vegetables have widened.

Analyzed by sub-index and on a year-on-year comparison, the CPI (A), CPI(B) and CPI(C) rose 0.9 percent, 0.8 percent and 0.8 percent in May, also larger than the corresponding increases of 0.7 percent, 0.4 percent and 0.2 percent in April.

Source: Xinhua