Consumer Price Indices for April 2001

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Contents of press release

The Census and Statistics Department released today (May 22) the Consumer Price Index (CPI) figures for April 2001. According to the new 1999/2000-based series of Composite CPI, overall consumer prices declined by 1.4% in April 2001 over a year earlier, smaller than the 1.9% decrease in March 2001.

Lesser declines were likewise observed in all the three sub-indices. The CPI(A), CPI(B) and CPI(C) fell by 1.2%, 1.6% and 1.4% respectively in April 2001 over a year earlier, as compared to corresponding decreases of 2.1%, 2.0% and 1.5% in March 2001.

The smaller year-on-year decreases in the CPIs in April 2001 than in March 2001 were mainly attributable to dissipation of the effect of the special one-off rebate on electricity charges by a power company and, to a lesser extent, a further narrowing of the decline in private housing rentals. Also relevant was increased prices of fresh vegetables owing to reduced supply in the latter part of April.

For discerning the latest trend in consumer prices, it is also useful to look at the changes in the seasonally adjusted CPIs. For the 3-month period ended April 2001, the average monthly rates of decrease in the seasonally adjusted Composite CPI, CPI(A) and CPI(B) were 0.1%, 0.1% and 0.2% respectively, while the seasonally adjusted CPI(C) showed virtually nil change. These were all smaller than the corresponding declines of 0.3%, 0.4%, 0.3% and 0.2% during the 3-month period ended March 2001.

Amongst the various components, durable goods registered the largest year-on-year decline in prices in April 2001 (-7.0% in the Composite CPI and -6.9% in the CPI(A)), followed by housing (-3.0% in the Composite CPI and -2.5% in the CPI(A)), food (excluding meals bought away from home) (-2.1% in the Composite CPI and -2.5% in the CPI(A)), clothing and footwear (-1.9% in the Composite CPI and -2.4% 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, alcoholic drinks and tobacco had the largest year-on-year increase in prices (3.6% in the Composite CPI and 3.7% in the CPI(A)), followed by miscellaneous goods (1.7% in the Composite CPI and 3.7% in the CPI(A)), transport (0.8% in the Composite CPI and 0.9% in the CPI(A)), electricity, gas and water (0.7% in the Composite CPI and 0.7% in the CPI(A)), and miscellaneous services (0.3% in the Composite CPI and 0.5% in the CPI(A)).

Taking the first four months of 2001 together, the Composite CPI was lower by 1.8% than a year earlier. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 1.8%, 1.9% and 1.7%.

For the 3 months ended April 2001, the Composite CPI fell by 1.9% over a year earlier. The corresponding declines in the CPI(A), CPI(B) and CPI(C) were 1.9%, 2.0% and 1.8%.

For the 12 months ended April 2001, the Composite CPI was on average 2.7% lower than in the preceding 12-month period. The corresponding falls in the CPI(A), CPI(B) and CPI(C) were 2.2%, 2.8% and 3.2%.

The new 1999/2000-based CPI series, as was first announced by the Census and Statistics Department on 4 May 2001, is compiled on the basis of the expenditure patterns obtained from the Household Expenditure Survey conducted during October 1999 to September 2000. It replaces the old 1994/95-based series for analysing the movements in consumer prices. Yet the old series will continue to be compiled in parallel with new series until the reference month of December 2001. It is an established practice in Hong Kong for the Household Expenditure Survey to be conducted and for the CPI series to be rebased once every five years. Both the old and the new series of CPIs have been exhibiting a similar trend in recent months.

Commentary

A Government Secretariat spokesmen noted that while consumer prices remained generally soft amidst lower import prices, the rates of decline in the CPIs narrowed most recently, as property rentals continued to bottom out and as the effect of the one-off rebate on electricity charges lapsed.

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 April 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 or email address cpi_1@censtatd.gov.hk.

End/Tuesday, May 22, 2001

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