**************************************

Contents of press release

The Census and Statistics Department released today (September 22) the Consumer Price Index (CPI) figures for August 2000.

As indicated by the Composite CPI, consumer prices in overall terms registered a year-on-year rate of decrease of 2.7% in August 2000, representing a moderation from the 3.2% fall in July 2000.

Smaller declines were observed in all the three sub-indices. In August 2000, the CPI(A), CPI(B) and CPI(C) fell by 1.8%, 2.7% and 3.6% respectively over a year earlier, having decreased by 2.2%, 3.3% and 4.3% in July.

The smaller year-on-year decrease in the CPIs in August than in July was mainly attributable to moderated declines in private housing rentals and the prices of basic foodstuffs and durable goods. Also partly contributed was a further pick-up in the charges for package tours, as well as in the prices of miscellaneous goods and motor fuels. These more than offset an enlarged decline in the prices of clothing and footwear.

For discerning the latest trend in consumer prices, it is also useful to look at changes in the seasonally adjusted CPIs. The average monthly rate of change in the seasonally adjusted Composite CPI during the 3-month period ended August 2000 was -0.2%, slightly larger than the corresponding change of -0.1% recorded during the 3-month period ended July 2000. As to the three sub-indices, the average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) during the 3-month period ended August 2000 were -0.1%, -0.2% and -0.2% respectively, as compared to the corresponding figures of -0.1%, -0.1% and -0.2% during the 3-month period ended July 2000.

Amongst the various components, clothing and footwear continued to register the largest year-on-year decrease in August 2000 (-11.6% in the Composite CPI and -11.9% in the CPI(A)); followed by housing (-6.4% in the Composite CPI and -3.6% in the CPI(A)); food (excluding meals bought away from home) (-3.0% in the Composite CPI and -3.2% in the CPI(A)); durable goods (-1.7% in the Composite CPI and -1.5% in the CPI(A)); and meals bought away from home (-0.9% in the Composite CPI and -0.8% in the CPI(A)). As regards alcoholic drinks and tobacco, the index decreased by 0.1% in the Composite CPI but remained unchanged in the CPI(A).

On the other hand, year-on-year increases were recorded for fuel and light (2.9% in the Composite CPI and 3.0% in the CPI(A)); transport (1.9% in the Composite CPI and 1.0% in the CPI(A)); miscellaneous goods (1.8% in the Composite CPI and 1.5% in the CPI(A)); and miscellaneous services (1.2% in the Composite CPI and 1.5% in the CPI(A)).

Taking the first eight months of 2000 together, the Composite CPI declined by 4.3% as compared to the same period in 1999. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 3.3%, 4.5% and 5.3%.

For the three months ended August 2000, the Composite CPI declined by 3.5% as compared to the same period in 1999. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 2.5%, 3.6% and 4.6%.

For the 12 months ended August 2000, the Composite CPI was on average 4.4% lower than in the preceding 12-month period. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 3.4%, 4.9% and 5.1%.

Commentary

A Government Secretariat spokesman noted that the year-on-year decline in consumer prices narrowed further in August. Part of this was attributable to reduced decline in private housing cost, amidst the recent stabilisation of private housing rentals. Also, there was some renewed price pressure from external sources upon the firming up in world commodity prices, although the resultant impact on local consumer prices so far had been rather limited.

Further information

Further details are shown in Tables 1 and 2. The rates of change in the original and the seasonally adjusted Composite CPI are presented graphically in Chart 1.

The August 2000 issue of the "Monthly Report on the Consumer Price Index" is now on sale at $28 a copy. This publication can be purchased at the Government Publications Centre, Ground Floor, Low Block, Queensway Government Offices, 66 Queensway, Hong Kong. It is also available for sale at the Publications Unit of the Census and Statistics Department, 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong. Regular subscription can also be arranged with the Publications Sales Section of the Information Services Department (Tel.: 2842 8844 or 2842 8845). Moreover, Internet users may order the publication through the website of the Information Services Departments (Address : http://www.info.gov.hk/isd/book_e.htm)

For enquiries about the Consumer Price Indices, please contact the Consumer Price Index Section of the Census and Statistics Department at telephone no. 2805 6403.

End/Friday, September 22, 2000

NNNN