Hong Kong's Composite Consumer Price Index (CPI) increased by 1.4% year-on-year in October, slower than the 2.2% rise recorded in September, according to government data released on Thursday.

The smaller rise was largely attributed to the dissipation of a low base effect from public housing rent adjustments and relief measures in the third quarter of 2023.

Excluding government relief measures, the underlying inflation rate in October was 1.2%, up from 0.9% in September.

The seasonally adjusted monthly CPI increase for the three months ending October was 0.1%, down from 0.4% in the prior period.

Among key CPI components, prices for alcoholic drinks and tobacco surged by 21.8%, while housing prices rose 1%. In contrast, clothing and footwear saw a 1.4% decline.

For the first 10 months of 2024, the Composite CPI rose by 1.8% year-on-year, with prices in the CPI(A), CPI(B), and CPI(C) sub-indices increasing by 2.2%, 1.7%, and 1.6%, respectively.

A government spokesman said underlying inflation remained modest in October, with food prices increasing slightly and energy-related price declines narrowing.

Price pressures are expected to remain mild in the near term, with domestic costs facing slight upward pressures as the economy grows, while external pressures ease.