Consumer Price Indices for January 2001

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Contents of press release

According to the Consumer Price Index (CPI) figures released by the Census and Statistics Department today (February 22), overall consumer prices, as indicated by the Composite CPI, declined by 1.2% in January 2001 over a year earlier, smaller than the 1.8% decrease in December 2000.

Smaller declines were likewise observed in all the three sub-indices. The CPI(A), CPI(B) and CPI(C) fell by 1.0%, 1.3% and 1.3% respectively in January 2001 over a year earlier, as compared to decreases of 1.4%, 1.8% and 2.3% in December 2000.

The smaller year-on-year decreases in the CPIs in January 2001 than in December 2000 were attributable in part to a further narrowing in the declines of private housing rentals and overall food prices. Also contributed were upward adjustments in the charges for package tours and the prices of certain food items shortly before the Lunar New Year Holidays, which fell in January this year but in February last year. These more than offset the effect of an enlarged drop in the prices of outerclothing, due to increased price discounts offered by some of the retailers.

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 January 2001, the average monthly rates of change in the seasonally adjusted CPIs were all virtually nil, as compared to increases of 0.1% in all the CPIs during the 3-month period ended December 2000.

Amongst the various components, clothing and footwear registered the largest year-on-year decrease in January 2001 (-7.2% in the Composite CPI and -7.3% in the CPI(A)), followed by housing (-4.1% in the Composite CPI and -3.5% in the CPI(A)), durable goods (-1.9% in the Composite CPI and -2.0% in the CPI(A)), food (excluding meals bought away from home) (-1.8% in the Composite CPI and -2.0% in the CPI(A)), and meals bought away from home (-0.2% in the Composite CPI and -0.4% in the CPI(A)).

On the other hand, year-on-year increases were recorded for miscellaneous goods (2.9% in the Composite CPI and 4.3% in the CPI(A)), miscellaneous services (2.8% in the Composite CPI and 2.2% in the CPI(A)), fuel and light (2.6% in the Composite CPI and 2.9% in the CPI(A)), and transport (1.8% in the Composite CPI and 1.3% in the CPI(A)). As regards alcoholic drinks and tobacco, the index decreased by 0.1% in the Composite CPI but increased by 0.1% in the CPI(A).

For the three months ended January 2001, the Composite CPI declined by 1.7% as compared to the same period a year earlier. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 1.2%, 1.8% and 2.1%.

For the 12 months ended January 2001, the Composite CPI was on average 3.3% lower than in the preceding 12-month period. The corresponding declines in the CPI(A), CPI(B) and CPI(C) were 2.5%, 3.5% and 4.1%.

Commentary

A Government Secretariat spokesman noted that the year-on-year decline in consumer prices narrowed further in January 2001. To some extent, this was influenced by the timing of the Lunar New Year Holidays. Yet also of much relevance was the continued bottoming off in private residential rentals, as well as reduced falls in the import prices of foodstuffs and consumer goods, since the latter part of 2000. Within the overall CPI, some of the components had already reverted to mild increases.

Further information

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

The January 2001 issue of the "Monthly Report on the Consumer Price Index" is now on sale at $38 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, February 22, 2001

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