Price hikes of meals and jewelry have pushed up Hong Kong's overall consumer prices by 2.1 percent in May over the same period of last year, revealed the statistics released by the Census and Statistics Department Thursday.

The inflation in May continued its moderate upwards way in Hong Kong, as compared with 1.9 percent year-on-year increase in April.

The Census and Statistics Department mainly contributed the slightly larger year-on-year rise in May to hikes in the price of meals bought away from home, as well as higher jewelry prices.

Higher communications services charges also helped add to the inflation momentum, according to the department.

The department said consumer price inflation continued to edge up in May, as the rise in private housing rentals increasingly fed through to the consumer price indices. Yet prices of most other goods and services recorded only moderate increases or even declines, so overall inflationary pressure remained in check.

Consumer price inflation is likely to remain at a moderate level, predicted the department, as continuous expansion in production capacity amid the economic upturn and rapid labor productivity growth help maintain the resource demand and supply balance.

The department said, however, external risk factors remained to be watched for in the coming months, including the build-up of global inflationary pressures, high oil prices and renewed weakening of the U.S. dollar.

The housing sector saw a 5 percent year-on-year price increase in May, followed by electricity, gas and water by 3.7 percent and miscellaneous goods by 2.3 percent.

Year-on-year price declines, however, were recorded for durable goods, down 7 percent, alcohol and tobacco down 6.5 percent and clothing and footwear falling by 0.8 percent.

Taking the first five months of this year together, the Composite consumer price index (CPI) in Hong Kong had increased 1. 8 percent over a year earlier.

Source: Xinhua