****************************************
Contents of press release
According to the Consumer Price Index (CPI) figures released by the Census and Statistics Department today (January 22), overall consumer prices, as indicated by the Composite CPI, declined by 1.8% in December 2000 over a year earlier, smaller than the 2.0% decrease in November 2000.
Analysed by sub-index, the CPI(B) and CPI(C) fell by 1.8% and 2.3% respectively in December 2000 over a year earlier, also smaller than the decreases of 2.1% and 2.7% in November 2000. For CPI(A), the year-on-year decline was 1.4% in December 2000, marginally larger than the 1.3% fall in November 2000.
The smaller year-on-year decrease in the Composite CPI in December 2000 than in November 2000 was mainly attributable to a moderated decline in private housing rentals, and to a lesser extent, an upward adjustment in the prices of miscellaneous services including charges of package tours and private medical services. These more than offset the effect of an enlarged drop in the prices of basic foodstuffs.
For discerning the latest trend in consumer prices, it is also useful to look at changes in the seasonally adjusted CPIs. For the 3-month period ended December 2000, the seasonally adjusted Composite CPI, CPI(A), CPI(B) and CPI(C) all showed average monthly increases of 0.1%. These were the same as the corresponding increases for the 3-month period ended November 2000.
Amongst the various components, clothing and footwear registered the largest year-on-year decrease in December 2000 (-5.5% in the Composite CPI and -5.4% in the CPI(A)), followed by housing (-4.9% in the Composite CPI and -3.9% in the CPI(A)), food (excluding meals bought away from home) (-3.2% in the Composite CPI and -3.5% in the CPI(A)), durable goods (-1.3% in both the Composite CPI and CPI(A)), and meals bought away from home (-0.5% in both the Composite CPI and CPI(A)).
On the other hand, year-on-year increases were recorded for miscellaneous goods (3.2% in the Composite CPI and 4.5% in the CPI(A)), fuel and light (3.0% in the Composite CPI and 3.5% in the CPI(A)), transport (1.4% in the Composite CPI and 1.0% in the CPI(A)), alcoholic drinks and tobacco (1.0% in the Composite CPI and 0.9% in the CPI(A)), and miscellaneous services (0.6% in the Composite CPI and 0.2% in the CPI(A)).
In the fourth quarter of 2000, the Composite CPI declined by 2.2% over a year earlier. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 1.6%, 2.2% and 2.8%.
For 2000 as a whole, the Composite CPI fell by an average of 3.7% over a year earlier. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 2.8%, 3.8% and 4.5%.
Commentary
A Government Secretariat spokesman noted that the decrease in consumer prices as a whole narrowed further in December 2000. For 2000 as a whole, the Composite CPI fell by 3.7%, somewhat smaller than the 4.0% decline in 1999.
Yet the year-on-year decrease showed a continued narrowing over the course of the year, from 5.1% in the first quarter to 4.5% in the second quarter, and then more visibly to 2.8% and 2.2% respectively in the third and fourth quarters, indicating that the downtrend in consumer prices generally might be gradually levelling off.
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 December 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/Monday, January 22, 2001
NNNN