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The Census and Statistics Department (C&SD) released today (September 22) the Consumer Price Index (CPI) figures for August 2006. According to the new 2004/05-based series of Composite CPI, overall consumer prices rose by 2.5% in August 2006 over a year earlier, larger than the 2.3% increase in July.
The larger year-on-year increase in the Composite CPI in August 2006 than in July was mainly attributable to the enlarged increases in the prices of fresh vegetables.
Analysed by sub-index and on a year-on-year comparison, the CPI(A), CPI(B) and CPI(C) rose by 2.3%, 2.6% and 2.6% respectively in August 2006, also larger than the corresponding increases of 2.0%, 2.4% and 2.5% in July.
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 August 2006, the average monthly rates of increase in the seasonally adjusted Composite CPI, CPI(A), CPI(B) and CPI(C) were all 0.2%. The corresponding rates of increase for the 3-month period ended July 2006 were 0.3%, 0.2%, 0.3% and 0.4% respectively.
Amongst the various CPI components, year-on-year increases in prices were recorded in August 2006 for electricity, gas and water (4.8% in the Composite CPI and 4.5% in the CPI(A)), housing (4.8% in the Composite CPI and 3.9% in the CPI(A)), food (excluding meals bought away from home) (4.0% in the Composite CPI and 4.6% in the CPI(A)), miscellaneous services (2.9% in the Composite CPI and 2.2% in the CPI(A)), clothing and footwear (2.5% in the Composite CPI and 4.0% in the CPI(A)), miscellaneous goods (2.0% in the Composite CPI and 1.3% in the CPI(A)), meals bought away from home (1.4% in the Composite CPI and 1.1% in the CPI(A)) and transport (0.3% in the Composite CPI and 0.1% in the CPI(A)).
On the other hand, year-on-year declines in prices were recorded in August 2006 for durable goods (-7.0% in the Composite CPI and -7.3% in the CPI(A)) and alcoholic drinks and tobacco (-3.2% in the Composite CPI and -3.9% in the CPI(A)).
Taking the first eight months of 2006 together, the Composite CPI rose by 2.0% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 1.7%, 2.0% and 2.1%.
For the 3 months ended August 2006, the Composite CPI rose by 2.3% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 2.1%, 2.4% and 2.5% respectively.
For the 12 months ended August 2006, the Composite CPI was on average 1.8% higher than in the preceding 12 month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.6%, 1.9% and 1.9%.
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 the slight edging up in consumer price inflation in August was almost entirely due to the spike in vegetable prices, in turn mainly caused by a typhoon during the month. Excluding the effect of volatile food prices, the underlying price pressures were actually rather modest, as also evident from the slight easing in the pace of increase in the seasonally adjusted CPI series over the past few months.
The spokesman said that consumer price inflation, though possibly still creeping up in the coming months, should remain at a moderate level in the rest of this year, reflecting rising productivity and capacity expansion over the past few quarters, slower rental increase lately, as well as the recent easing in oil prices.
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 August 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/Friday, September 22, 2006
Issued at HKT 16:15
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