HONG KONG - HONG Kong's inflation rate hit 1.8 per cent in Oct, down from 3 per cent in Sep, on government relief measures and lower food and oil costs, official figures showed on Thursday.
The declines came after the government steps, including a three-month waiver of public housing rentals, a two-year suspension of employees' retraining levy and an electricity charge subsidy.
The underlying inflation rate - excluding the relief measures - was 5.9 per cent, down from 6.1 per cent year-on-year in Sept, according to by the Census and Statistics Department.
Rice showed the largest year-on-year increase, rising 55.1 per cent, while beef jumped 28 per cent and fresh-water fish was up 27.3 per cent.
But prices for electricity, gas, and water dropped at least 30 per cent as a result of the government subsidy.
A government spokesman said: 'Looking ahead, with the international commodity prices retreating and US dollar strengthening, inflationary pressures from the external front are receding.'
'These factors, coupled with the slowdown in domestic demand and (the) government's relief measures, should be conducive to progressive easing in inflation going forward.' -- AFP
