Tempered by declining basic food bills, Hong Kong's consumer price index (CPI) rose by 1.4% on-year in March, easing from the 1.7% on year rise recorded for the combined months of January and February, reported the Census & Statistics Department (C&SD) on Wednesday.

Netting out the effects of certain government relief programs, the CPI rose 1.0% on year in March, smaller than the average rate of increase in January and February of 1.3% on year, added the C&SD.

The special administrative region of Hong Kong combines some economic data for the months of January and February due to the annual week-long New Year holidays, which can fall in either month, and skew resulting figures.

For the first quarter of 2025, Hong Kong's CPI rose by 1.6% on year, reported C&SD.

In March, Hong Kong consumers faced higher prices in electricity, gas and water, up 14.0% on year, in alcoholic drinks and tobacco, up 4.4%, in transportation, up 1.7%, and housing, also up 1.7%.

In contrast, consumer prices in March declined 2.8% on year for clothing and footwear, fell 1.5% for basic food, and decreased 0.5% for durable goods.

A Hong Kong government official said that "the underlying consumer price inflation stayed modest in March, and "price pressures on various major components stayed contained in general."

Inflation should remain modest in the near term and external price pressures should be broadly in check, "though escalating trade conflicts continue to warrant attention," reported the C&SD.