Consumer Price Indices for February 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 (March 22), overall consumer prices, as indicated by the Composite CPI, declined by 2.1% in February 2001 over a year earlier, larger than the 1.2% decrease in January 2001.

Larger declines were likewise observed in all the three sub-indices. The CPI(A), CPI(B) and CPI(C) fell by 1.9%, 2.2% and 2.0% respectively in February 2001 over a year earlier, as compared to decreases of 1.0%, 1.3% and 1.3% in January 2001.

The larger year-on-year decreases in the CPIs in February 2001 than in January 2001 were mainly affected by the timing of the Lunar New Year, which fell in January this year but in February last year. The prices of basic foodstuffs, outbound transport fares and charges for package tours all eased back in February, shortly after the Lunar New Year holidays. Also contributed was a decrease in electricity charges, consequential to a special one-off rebate by a power company. These factors more than offset the effects of a further narrowing in the decline of private housing rentals and an upward adjustment in residential telephone service charge.

Taking the first two months of 2001 together, the Composite CPI declined by 1.6% over a year earlier. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 1.4%, 1.8% and 1.7%.

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 February 2001, the average monthly rates of change in the seasonally adjusted CPIs were all -0.4%, as compared to a virtually nil change in all these CPIs during the 3-month period ended January 2001.

Amongst the various components, fuel and light registered the largest year-on-year decrease in February 2001 (-13.0% in the Composite CPI and -17.1% in the CPI(A)), followed by clothing and footwear (-7.7% in the Composite CPI and -7.8% in the CPI(A)), housing (-3.5% in the Composite CPI and -2.9% in the CPI(A)), food (excluding meals bought away from home) (-3.0% in the Composite CPI and -3.3% in the CPI(A)), durable goods (-2.4% in the Composite CPI and -2.0% in the CPI(A)), and meals bought away from home (-0.3% in the Composite CPI and -0.6% the CPI(A)).

On the other hand, year-on-year increases were recorded for miscellaneous goods (2.1% in the Composite CPI and 3.5% in the CPI(A)), alcoholic drinks and tobacco (1.1% in the Composite CPI and 0.9% in the CPI(A)), transport (0.5% in the Composite CPI and 0.7% in the CPI(A)), and miscellaneous services (0.2% in the Composite CPI and 1.8% in the CPI(A)).

For the 3 months ended February 2001, the Composite CPI fell by 1.7% over a year earlier. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 1.4%, 1.8% and 1.9%.

For the 12 months ended February 2001, the Composite CPI was on average 3.1% lower than in the preceding 12-month period. The corresponding declines in the CPI(A), CPI(B) and CPI(C) were 2.3%, 3.2% and 3.8%.

Commentary

A Government Secretariat spokesman commented that to a considerable extent, the movement of consumer prices in the first two months of 2001 was subject to the seasonal effect of the Lunar New Year. While increases in the prices of certain food items and the charges for package tours shortly before the Lunar New Year holidays contributed to a reduced decline in the Composite CPI in January, the latest decreases in these prices and charges back to the pre-holiday levels resulted in an enlarged decrease in the price index in February. Yet taking the first two months of 2001 together, the Composite CPI was down by 1.6% over a year earlier, still smaller than the 2.2% decrease recorded in the fourth quarter of 2000.

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 February 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, March 22, 2001

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