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Contents of press release

The Census and Statistics Department released today (November 21) the Consumer Price Index (CPI) figures for October 2000.

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

Analysed by sub-index, the CPI(B) and CPI(C) declined by 2.8% and 3.5% respectively in October 2000 over a year earlier, also larger than the decreases of 2.5% and 3.3% in September 2000. Yet for the CPI(A), the year-on-year decline was 2.1% in October 2000, same as that in September 2000.

The slightly larger year-on-year decline in the Composite CPI in October than in September was mainly attributable to a larger decrease in housing rentals, caused by dissipation of the effect of the 50% rates concession granted in the third quarter of last year. Coupled with an enlarged decline in the prices of durable goods and a lesser increase in the prices of miscellaneous goods, this more than offset the effect of moderated decreases in the prices of basic foodstuffs and clothing.

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 October 2000 was -0.1%, same as that recorded during the 3-month period ended September 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 October 2000 were virtually nil, -0.1% and -0.1% respectively. The corresponding figures were all -0.1% during the 3-month period ended September 2000.

Amongst the various components, housing registered the largest year-on-year decrease in October 2000 (-7.0% in the Composite CPI and -5.2% in the CPI(A)), followed by clothing and footwear (-6.5% in the Composite CPI and -7.6% in the CPI(A)), food (excluding meals bought away from home) (-2.8% in the Composite CPI and -3.1% in the CPI(A)), durable goods (-1.7% in the Composite CPI and -1.5% in the CPI(A)), meals bought away from home (-0.6% in the Composite CPI and -0.5% in the CPI(A)), and miscellaneous services (-0.2% in the Composite CPI and -0.8% in the CPI(A)).

On the other hand, year-on-year increases were recorded for fuel and light (3.7% in the Composite CPI and 4.1% in the CPI(A)), transport (1.5% in the Composite CPI and 1.0% in the CPI(A)), miscellaneous goods (1.3% in the Composite CPI and 2.3% in the CPI(A)), and alcoholic drinks and tobacco (0.8% in the Composite CPI and 0.9% in the CPI(A)).

Taking the first ten months of 2000 together, the Composite CPI declined by 4.0% as compared to the same period in 1999. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 3.1%, 4.2% and 4.9%.

For the 3 months ended October 2000, the Composite CPI declined by 2.7% as compared to the same period in 1999. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 2.0%, 2.7% and 3.4%.

For the 12 months ended October 2000, the Composite CPI was on average 4.0% lower than in the preceding 12-month period. The corresponding declines in the CPI(A), CPI(B) and CPI(C) were 3.1%, 4.3% and 4.8%.

Commentary

A Government Secretariat spokesman noted that the slightly larger year-on-year decline in the Composite CPI in October than in September was mostly attributable to dissipation of the effect of the 50% rates concession granted in the third quarter of last year. Netting out this differential base effect, the Composite CPI should have undergone a lesser year-on-year decline in October.

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 October 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 Department. (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/Tuesday, November 21, 2000

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