Consumer prices increased 1.7% year-on-year in January, a smaller increase than that registered in December 2023.

Netting out the effects of the Government’s one-off relief measures, the underlying inflation rate was 0.8%, also lower than that seen in December.

The department noted that the smaller increase was mainly due to the timing of the Lunar New Year last year, which fell in January, resulting in a high comparison base, in particular food prices.

Compared with January last year, price increases were recorded in the following categories: alcoholic drinks and tobacco; clothing and footwear; meals out and takeaway food; housing; miscellaneous services; miscellaneous goods; and transport.

By contrast, year-on-year price decreases for electricity, gas and water, basic food, and durable goods were recorded.