Hong Kong's overall consumer prices rose 2 percent in October over a year earlier, slightly less than the 2.1 percent growth in September, Hong Kong Census and Statistics Department said Tuesday.

The slightly smaller year-on-year rise was mainly due to the decrease in the fuel-cost variation charge for Towngas, the department said. The increase in the prices of fresh vegetables also tapered off.

Consumer price inflation edged down for the second consecutive month in October, due mostly to the substantial decrease in Towngas charges upon the introduction of natural gas, and the ease-back in oil prices. The pass-through from the earlier increase in fresh letting rentals seems to have passed its peak.

Consumer price inflation is expected to stay at a moderate level through to the end of the year. While the recent weakening of the Hong Kong dollar along with the U.S. dollar might give riseto some modest pick-up in imported inflation, the substantial fall-off in oil prices lately coupled with the sustained increase in productivity in Hong Kong should keep overall price pressures in check.

Year-on-year increases in prices were recorded in October for housing (up 4.7 percent), clothing and footwear (3.1 percent), food (2.8 percent), miscellaneous goods (2.1 percent), miscellaneous services (2.1 percent) and meals bought away from home (1.5 percent).

However, prices for durable goods went down 6.6% from a year earlier. Declines were also recorded for alcoholic drinks and tobacco (4 percent), and electricity, gas and water (2.5 percent).

For the quarter ended October, the average monthly rates of increase in the seasonally adjusted Composite CPI was 0.1 percent, the same as that for the quarter ended September.

According to the department, taking this year's first 10 months together, the Composite CPI rose 2 percent over a year earlier. For the quarter ended October, the Composite CPI recorded a 2.2 percent year-on-year increase. For the 12 months ended October, the Composite CPI was on average 1.9 percent higher than in the preceding 12-month period.

Editor: Donald