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Contents of press release

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

As indicated by the Composite CPI, consumer prices in overall terms registered a year-on-year rate of decrease of 2.6% in September 2000, slightly smaller than the 2.7% fall in August 2000.

Analysed by sub-index, the CPI(B) and CPI(C) declined by 2.5% and 3.3% respectively in September 2000 over a year earlier, also smaller than the decreases of 2.7% and 3.6% in August 2000. Yet for the CPI(A), the year-on-year decline was 2.1% in September 2000, larger than the decline of 1.8% in August 2000.

Comparing the year-on-year decreases in September with those in August 2000, the prices of outerclothing and private housing rentals showed smaller year-on-year decreases, whereas the prices of fresh vegetables registered a much more significant decline over a year earlier due to the effect of a higher base of comparison in September last year.

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 September 2000 was -0.1%, slightly smaller than the corresponding change of -0.2% recorded during the 3-month period ended August 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 September 2000 were all -0.1%, as compared to the corresponding figures of -0.1%, -0.2% and -0.2% during the 3-month period ended August 2000.

Amongst the various components, clothing and footwear continued to register the largest year-on-year decrease in September 2000 (-7.2% in the Composite CPI and -8.7% in the CPI(A)); followed by food (excluding meals bought away from home) (-6.3% in the Composite CPI and -6.8% in the CPI(A)); housing (-5.6% in the Composite CPI and -3.0% in the CPI(A)); meals bought away from home (-0.8% in the Composite CPI and -0.5% in the CPI(A)); durable goods (-0.5% in both the Composite CPI and CPI(A)); and miscellaneous services (-0.1% in the Composite CPI and -0.7% in the CPI(A)).

On the other hand, year-on-year increases were recorded for fuel and light (3.5% in the Composite CPI and 4.0% in the CPI(A)); miscellaneous goods (2.5% in both the Composite CPI and CPI(A)); alcoholic drinks and tobacco (1.3% in the Composite CPI and 1.2% in the CPI(A)); and transport (1.3% in the Composite CPI and 1.0% in the CPI(A)).

Taking the first nine months of 2000 together, the Composite CPI declined by 4.2% as compared to the same period in 1999. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 3.2%, 4.3% and 5.1%.

In the third quarter of 2000, the Composite CPI declined by 2.8% as compared to the same period in 1999. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 2.0%, 2.9% and 3.7%.

For the 12 months ended September 2000, the Composite CPI was on average 4.1% lower than in the preceding 12-month period. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 3.1%, 4.5% and 4.8%.

Commentary

A Government Secretariat spokesman noted that the year-on-year decline in the Composite CPI narrowed further in September 2000, largely attributable to the moderated declines in private housing rentals, as well as in the prices of outerclothing and durable goods. These more than offset the effects of an enlarged decrease in the prices of fresh vegetables against a higher base of comparison a year earlier and an ease-back in the prices of miscellaneous services after increases in the preceding few months. The spokesman also pointed out that although the world commodity prices had been firming up in recent months, the resultant impact on local consumer prices had been rather limited so far.

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 September 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/Monday, October 23, 2000

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