RTTNews - Hong Kong's overall consumer prices dropped 1.5% year-on-year in July, faster than a 0.9% fall in the preceding month, the Census and Statistics Department said Thursday. The fall came in line with economists' expectations. This was the second consecutive month that consumer prices fell.

The year-on-year rates of change in the CPIs in July 2009 were still affected by various Government's one-off relief measures, in particular the implementation of electricity charge subsidy.

Netting the government's one-off measures, core consumer prices fell 0.3% in July, after rising 0.4% in the preceding month.

In the May to July period, consumer prices fell 0.1%, on a seasonally adjusted basis.

The statistical office noted that consumer prices eased further in July as local and external price pressures were both virtually absent. Moreover, the report said underlying consumer price inflation is likely to stay slightly negative in the coming months, as local price pressures continue to subside and import prices remain soft.

For comments and feedback: contact editorial@rttnews.com