Hong Kong consumer prices rose 1.7% y/y in March, slower than the 2.1% average rate seen in January and February, the Census and Statistics Department (C&SD) said on Friday, with food prices declining against a high comparative base caused by supply disruptions during the same time last year.

Price declines were seen for basic food (-2.8%) and durable goods (-2.8%), partially offset by increases in electricity, gas and water (+19.9%), and clothing and footwear (+6.3%). The C&SD said looking ahead inflation would remain moderate in the near-term, but external price pressures may remain a factor for sometime.

The Hong Kong monetary authority said it is projecting headline inflation for 2023 at 2.9%, in its most recent half yearly report.