Consumer Price Indices for May 2001

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Contents of press release

The Census and Statistics Department released today (June 21) the Consumer Price Index (CPI) figures for May 2001. According to the new 1999/2000-based series of Composite CPI, overall consumer prices declined by 1.5% in May 2001 over a year earlier, slightly larger than the 1.4% decrease in April 2001.

Analysed by sub-index, the CPI(A), CPI(B) and CPI(C) fell by 1.3%, 1.6% and 1.6% respectively in May 2001 over a year earlier, compared to the corresponding decreases of 1.2%, 1.6% and 1.4% in April 2001.

The slightly larger year-on-year fall in the Composite CPI in May 2001 than in April 2001 was mainly attributable to enlarged declines in the prices of outer-clothing and certain food items such as fresh fruits and vegetables. These decreases more than offset the effect of a further narrowing in the decline of private housing rentals.

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 May 2001, the average monthly rates of increase in the seasonally adjusted Composite CPI and CPI(A) were 0.1% and 0.2% respectively, while both the seasonally adjusted CPI(B) and CPI(C) showed virtually nil change. The corresponding figures for the seasonally adjusted Composite CPI, CPI(A) and CPI(B) during the 3-month period ended April 2001 showed decreases of 0.1%, 0.1% and 0.2% respectively, while that for the seasonally adjusted CPI(C) showed no change.

Amongst the various components, durable goods registered the largest year-on-year decline in prices in May 2001 (-7.4% in the Composite CPI and -7.3% in the CPI(A)), followed by clothing and footwear (-4.4% in the Composite CPI and -3.9% in the CPI(A)), food (excluding meals bought away from home) (-2.7% in the Composite CPI and -3.1% in the CPI(A)), housing (-2.6% in the Composite CPI and -2.2% in the CPI(A)), and meals bought away from home (-0.2% in the Composite CPI and -0.5% in the CPI(A)).

On the other hand, alcoholic drinks and tobacco had the largest year-on-year increase in prices (3.0% in the Composite CPI and 3.4% in the CPI(A)), followed by miscellaneous goods (1.9% in the Composite CPI and 3.4% in the CPI(A)), transport (0.7% in the Composite CPI and 0.9% in the CPI(A)), electricity, gas and water (0.7% in both the Composite CPI and CPI(A)), and miscellaneous services (0.2% in the Composite CPI and 0.3% in the CPI(A)).

Taking the first five 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 1.7%, 1.8% and 1.7%.

For the 3 months ended May 2001, the Composite CPI fell by 1.6% over a year earlier. The corresponding declines in the CPI(A), CPI(B) and CPI(C) were 1.5%, 1.7% and 1.5%.

For the 12 months ended May 2001, the Composite CPI was on average 2.5% lower than in the preceding 12-month period. The corresponding falls in the CPI(A), CPI(B) and CPI(C) were 2.1%, 2.5% and 2.8%.

The new 1999/2000-based CPI series, as was first announced by the Census and Statistics Department on May 4, 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 spokesman noted that overall consumer prices continued on a decline, as import prices fell further along with the easing in world commodity prices and the strengthening in the US dollar. For the first five months of 2001 as a whole, the Composite CPI fell by 1.8% over a year earlier, which was nevertheless smaller than the 3.8% decline in 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 May 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/Thursday, June 21, 2001

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