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Contents of press release
The Census and Statistics Department released today (July 23) the Consumer Price Index (CPI) figures for June 2001. According to the new 1999/2000-based series of Composite CPI, overall consumer prices declined by 1.1% in June 2001 over a year earlier, smaller than the 1.5% decrease in May 2001.
Analysed by sub-index, the CPI(A), CPI(B) and CPI(C) fell by 0.7%, 1.2% and 1.3% respectively in June 2001 over a year earlier, also smaller than the corresponding decreases of 1.3%, 1.6% and 1.6% in May 2001.
The smaller year-on-year decreases in the CPIs in June 2001 than in May 2001 were mainly attributable to a firming up in the prices of basic foodstuffs, particularly those of vegetables and fruits caused by the rainy weather. Also relevant was a further narrowing in 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 June 2001, the average monthly rates of change in the seasonally adjusted Composite CPI, CPI(A), CPI(B) and CPI(C) were 0.1%, 0.2%, nil and -0.1% respectively. The corresponding rates of change in these seasonally adjusted CPIs for the 3-month period ended May 2001 were 0.1%, 0.2%, nil and nil.
Amongst the various components, durable goods registered the largest year-on-year decline in prices in June 2001 (-7.4% in the Composite CPI and -7.2% in the CPI(A)), followed by clothing and footwear (-5.1% in the Composite CPI and -4.9% in the CPI(A)), housing (-2.1% in the Composite CPI and -1.9% in the CPI(A)), and meals bought away from home (-0.3% 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 (3.3% in the Composite CPI and 3.7% in the CPI(A)), followed by miscellaneous goods (1.3% in the Composite CPI and 3.0% in the CPI(A)), electricity, gas and water (0.9% in both the Composite CPI and CPI(A)), transport (0.7% in the Composite CPI and 0.9% in the CPI(A)), miscellaneous services (0.2% in the Composite CPI and 0.3% in the CPI(A)), and food (excluding meals bought away from home) (0.1% in the Composite CPI and 0.2% in the CPI(A)).
In the second quarter of 2001, the Composite CPI fell by 1.3% over a year earlier. The corresponding declines in the CPI(A), CPI(B) and CPI(C) were 1.1%, 1.4% and 1.4%.
For the first half of 2001 as a whole, the Composite CPI was lower by 1.7% than a year earlier. The corresponding decreases in the CPI(A), CPI(B) and CPI(C) were 1.6%, 1.7% and 1.6%.
For the 12 months ended June 2001, the Composite CPI was on average 2.2% lower than in the preceding 12-month period. The corresponding falls in the CPI(A), CPI(B) and CPI(C) were 1.8%, 2.2% and 2.4%.
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 enumerated 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 the 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 the decline in overall consumer prices had continued to narrow in June 2001, in line with the trend observed over the past year or so, even though the latest narrowing in decline was partly caused by temporarily higher vegetable prices.
The spokesman further commented that, in face of the recent economic slow-down and lower prices of imports from the main sources, consumer prices were likely to still remain generally soft in the meantime.
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 June 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/Monday, July 23, 2001
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