HK's CPI up 3% in Jan.

Hong Kong's overall consumer prices rose by 3 percent in January 2013 over the same month a year earlier, smaller than the corresponding increase of 3.7 percent in December 2012, the city's Census and Statistics Department announced on Friday.

Netting out the effects of all government's one-off relief measures, the year-on-year rate of increase in the Composite Consumer Price Index (CPI), the underlying inflation rate in January 2013 was 3.1 percent, also smaller than the December 2012 level of 3.8 percent.

The smaller increase in January this year was mainly caused by the higher prices in January last year around the Lunar New Year which led to a higher base of comparison, the department said.

A government spokesman said that the year-on-year rate of inflation went lower in January 2013. Nevertheless, this was mainly attributable to the difference in timing of the Lunar New Year, which fell in late January last year but in mid-February this year.

The spokesman said that inflationary pressures are still likely to be largely contained in the near term, given the moderated increase in import prices and the modest local economic growth.