Donald Tsang, unveiling the short-term relief package to legislators, said it would cost around 11 billion Hong Kong dollars (S$1.88 billion) if given the green light.

'This is an extreme period. We need to deploy extreme measures,' he said.

The measures, targetting lower- and middle-income groups, include transport subsidies for students, an electricity subsidy for every household and an extra allowance for pensioners.

A total of 100 million dollars will be allocated to a food fund to help poor families, Tsang said.

The anti-inflation measures come as opinion polls show Mr Tsang's popularity in the southern Chinese city is at its lowest level since he was appointed in 2005.

Such an intervention is unusual in Hong Kong, which prides itself on its laissez-faire economic approach.

The latest inflation figures in Hong Kong showed prices increasing by 5.7 per cent in May from a year ago, as food costs continue to soar, with food rising 19.2 per cent on the previous year.

The cost of pork, a staple food in China, rose 56.8 per cent year-on-year, while beef was up 50 per cent, and rice rose 39.9 per cent, as the rises have started to reflect growing global food inflation.

Last month, the government announced a waiver on fuel taxes for public and commercial transport, following days of demonstrations by truck and bus drivers over surging oil prices. -- AFP