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The Census and Statistics Department (C&SD) released today (June 22) the Consumer Price Index (CPI) figures for May 2006. According to the new 2004/05-based series of Composite CPI, overall consumer prices rose by 2.1% in May 2006 over a year earlier, larger than the 1.9% increase in April.
The larger year-on-year increase in the Composite CPI in May 2006 than in April was mainly attributable to the enlarged increases in the costs for meals bought away from home as well as the prices of jewellery. Also contributed were the higher charges of telephone and other communications services.
Analysed by sub-index and on a year-on-year comparison, the CPI(A), CPI(B), and CPI(C) rose by 1.8%, 2.2% and 2.4% respectively in May 2006, also larger than the corresponding increases of 1.7%, 2.0% and 2.0% in 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 May 2006, the average monthly rates of increase in the seasonally adjusted Composite CPI, CPI(A), CPI(B) and CPI(C) were 0.3%, 0.2%, 0.3% and 0.4% respectively. The corresponding rates of increase for the 3-month period ended April 2006 were 0.2%, 0.1%, 0.2% and 0.2% respectively.
Amongst the various CPI components, year-on-year increases in prices were recorded in May 2006 for housing (5.0% in the Composite CPI and 4.0% in the CPI(A)), electricity, gas and water (3.7% in the Composite CPI and 3.6% in the CPI(A)), miscellaneous goods (2.3% in the Composite CPI and 1.2% in the CPI(A)), food (excluding meals bought away from home) (2.2% in the Composite CPI and 2.3% in the CPI(A)), miscellaneous services (1.9% in the Composite CPI and 1.3% in the CPI(A)), meals bought away from home (1.4% in the Composite CPI and 1.2% in the CPI(A)) and transport (1.4% in the Composite CPI and 1.2% in the CPI(A)).
On the other hand, year-on-year declines in prices were recorded in May 2006 for durable goods (-7.0% in the Composite CPI and -7.7% in the CPI(A)), alcoholic drinks and tobacco (-6.5% in the Composite CPI and -7.8% in the CPI(A)) and clothing and footwear (-0.8% in the Composite CPI and -0.2% in the CPI(A)).
Taking the first five months of 2006 together, the Composite CPI rose by 1.8% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 1.5%, 1.8% and 1.9%.
For the 3 months ended May 2006, the Composite CPI rose by 1.9% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 1.6%, 2.0% and 2.1% respectively.
For the 12 months ended May 2006, the Composite CPI was on average 1.5% higher than in the preceding 12 month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.4%, 1.6% and 1.6%.
The new 2004/05-based CPI series, as was first announced by the C&SD on April 27, 2006, is compiled on the basis of the expenditure patterns obtained from the Household Expenditure Survey (HES) conducted during October 2004 to September 2005. It replaces the old 1999/2000-based series for analysing consumer price inflation. The old series will continue to be compiled in parallel with the new series until the reference month of December 2006. It is an established practice in Hong Kong for the HES 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 pointed out that consumer price inflation continued to edge up in May, as the rise in private housing rentals increasingly fed through to the consumer price indices. Yet prices of most other goods and services recorded only moderate increases or even declines. Thus overall inflationary pressure remained in check. Looking ahead, consumer price inflation is likely to sustain at a moderate level, as continuous expansion in production capacity amidst the economic upturn and rapid labour productivity growth help maintain the resource demand and supply balance. However, certain risk factors from the external front, including gradual building up of global inflationary pressures, high oil prices and renewed weakening of the US dollar, are to be watched out.
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.
Users can download the May 2006 issue of the 'Monthly Report on the Consumer Price Index' free of charge at the "Statistical Bookstore, Hong Kong" (www.statisticalbookstore.gov.hk) of the C&SD. Print version of this publication is available for sale at HK$41 per issue. Purchase can be done in person at the Publications Unit of the C&SD (Address : 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel. : 2582 3025) or through mail order by returning a completed order form which can be downloaded from the C&SD's website (www.censtatd.gov.hk/products_and_services/other_services/provision_of_stat/mail_ordering_of_publications/index.jsp). Print version of this publication is also available for sale online at the Statistical Bookstore and the Government Bookstore of the Information Services Department (www.isd.gov.hk/eng/bookorder.htm). Print versions if purchased online are offered a discount, at 85% of their original prices.
For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD at telephone no. 2805 6403 or email address cpi@censtatd.gov.hk.
Ends/Thursday, June 22, 2006
Issued at HKT 16:16
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