Inflation continues forward march

Rises to 3.8% in October but government unworried.

Hong Kong's consumer price index rose 3.8% year-on-year, the same rate as that of September, said the Census and Statistics Department.

Excluding government one-off efforts, underlying inflation rate dipped to 3.8 percent in October from 3.9 percent in September. The slowing was mainly due to smaller increases in food prices and private housing rentals.

The government said inflation is continuing to ease. It expects inflation to remain contained for the rest of the year on slower economic growth and lower imported inflation.

The volatility of international food and commodity prices amid the global liquidity glut, and the renewed rise in local housing rentals in recent months may pose some upside risks to inflation further down the road.