Amongst the various CPI components, in December year-on-year price increases were recorded for: electricity, gas and water (+24.9 percent), mainly because some households had used up the full amount of Government's one-off electricity charge subsidy; housing (+8.5 percent), due mainly to dissipation of effect of rates concession since October; alcoholic drinks and tobacco (+7.6 percent), mainly due to the increase of tobacco duty; meals bought away from home (+4.4 percent); food (+3.1percent); miscellaneous services (+2.5 percent); miscellaneous goods (+1.3 percent) and transport (1.1 percent).
On the other hand, year-on-year price decreases were recorded for durable goods (-4.9 percent) and clothing and footwear (-2.7 percent).
Netting out the effects of all Government's one-off relief measures, the inflation in December 2014 was 3.1 percent, smaller than that in November (3.3 percent), mainly due to the smaller increases in the costs for meals bought away from home. Also relevant were the enlarged decreases in the prices of motor fuel and the decreases in the prices of fresh vegetables.
For 2014 as a whole, the Composite CPI was 4.4 percent higher than in 2013.
Looking ahead, upside risks to inflation should be limited in the near term, as the softening trend in global food and commodity prices should keep external price pressures in check. Moreover, local cost pressures will likely stay moderate. The Government will continue to monitor the inflation developments closely, particularly its impact on the lower-income people.