Consumer Price Indices for November 2000

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

Contents of press release

The fall in consumer prices narrowed progressively over the course of 2000. In November, consumer prices in overall terms, as indicated by the Composite CPI, registered a year-on-year rate of decrease of 2.0%, distinctly smaller than the 2.7% fall in October 2000.

Likewise smaller year-on-year declines were observed for the three sub-indices. Specifically, the CPI(A), CPI(B) and CPI(C) fell by 1.3%, 2.1% and 2.7% respectively in November 2000 over a year earlier, having decreased by 2.1%, 2.8% and 3.5% in October.

The smaller year-on-year decreases in the CPIs in November than in October were mainly attributable to moderated declines in private housing rentals, as well as in the prices of basic foodstuffs and clothing. Also relevant was a further increase in the prices of miscellaneous consumer goods, caused in part by an upward adjustment in the retail prices of newspapers.

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

For discerning the latest trend in consumer prices, it is also useful to look at changes in the seasonally adjusted CPIs. The average monthly rates of change in the seasonally adjusted Composite CPI, CPI(A), CPI(B) and CPI(C) during the 3-month period ended November 2000 were all 0.1%. The corresponding figures were -0.1%, virtually nil, -0.1% and -0.1% respectively during the 3-month period ended October 2000.

Amongst the various components, housing registered the largest year-on-year decrease in November 2000 (-6.0% in the Composite CPI and -4.6% in the CPI(A)), followed by clothing and footwear (-4.5% in the Composite CPI and -5.2% in the CPI(A)), durable goods (-1.4% in the Composite CPI and -1.6% in the CPI(A)), food (excluding meals bought away from home) (-1.1% in both the Composite CPI and CPI(A)), meals bought away from home (-0.6% in the Composite CPI and -0.5% in the CPI(A)), and miscellaneous services (-0.4% 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 4.2% in the CPI(A)), miscellaneous goods (3.1% in the Composite CPI and 4.6% in the CPI(A)), transport (1.4% in the Composite CPI and 1.0% in the CPI(A)), and alcoholic drinks and tobacco (1.3% in the Composite CPI and 1.1% in the CPI(A)).

Taking the first eleven months of 2000 together, the Composite CPI declined by 3.8% as compared to the same period in 1999. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 2.9%, 4.0% and 4.7%.

For the 3 months ended November 2000, the Composite CPI declined by 2.4% as compared to the same period in 1999. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 1.8%, 2.5% and 3.1%.

For the 12 months ended November 2000, the Composite CPI was on average 3.9% lower than in the preceding 12-month period. The corresponding declines in the CPI(A), CPI(B) and CPI(C) were 2.9%, 4.1% and 4.7%.

Commentary

A Government Secretariat spokesman noted that the fall in consumer prices narrowed further in November 2000, as the effect of the earlier decline in property rentals continued to taper off and as the import prices of some commodity items firmed up. The moderation was more visible in the second half of the year than in the first half. Reflecting this, the Composite CPI, having fallen by 5.1% and 4.5% respectively in the first two quarters over a year earlier, showed distinctly smaller decreases of 2.8% in the third quarter and 2.4% in October-November combined.

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 November 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/Thursday, December 21, 2000

NNNN