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The Census and Statistics Department (C&SD) released today (September 20) the Consumer Price Index (CPI) figures for August 2007. According to the Composite CPI, overall consumer prices rose by 1.6% in August 2007 over a year earlier.
The Budget measure of rates concession for the first two quarters of 2007/08 (i.e. April to September 2007) continued to carry effect on the CPIs in August. Netting out this factor, the year-on-year increase in the Composite CPI was 2.7% in August 2007.
The larger year-on-year increase in the Composite CPI in August 2007 (1.6%) than in July (1.5%) was mainly due to the enlarged year-on-year increase in food prices, from 3.6% in July to 4.6% in August. On the other hand, the cut in the rental of Housing Authority's housing estates as from August 2007 partly offset the impact of the higher food prices.
Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 0.7%, 1.7% and 2.4% respectively in August 2007, which compared to 1.0%, 1.6% and 2.1% respectively in July. Netting out the one-off effect of the rates concession, the year-on-year increases in the CPI(A), CPI(B) and CPI(C) were 2.1%, 2.7% and 3.3% respectively in August.
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 2007, 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 July 2007 were 0.3%, 0.3%, 0.4% and 0.4%.
Amongst the various CPI components, larger year-on-year increase in prices was recorded for food (excluding meals bought away from home) (7.8% in the Composite CPI and 8.4% in the CPI(A)) in August. Food items showing large price increases were pork (31.4% in the Composite CPI as compared with a year earlier); eggs (27.9%); canned meat (20.7%); beef (15.8%); frozen meat (14.9%); poultry (12.1%); other meat (12.1%); rice (11.7%); edible oils (10.4%) and salt-water fish (10.2%). On the other hand, there were some food items showing year-on-year price decreases in August 2007, including fresh vegetables (-2.9% in the Composite CPI); cereals and cereal preparations (other than rice) (-0.9%) and carbonated drinks (-0.4%). Most other food items registered moderate price increases of 5% or less.
Apart from food (excluding meals bought away from home), year-on-year increases in prices were recorded for clothing and footwear (4.3% in the Composite CPI and 1.2% in the CPI(A)), meals bought away from home (2.7% in the Composite CPI and 2.3% in the CPI(A)), miscellaneous goods (2.0% in the Composite CPI and 2.1% in the CPI(A)) and miscellaneous services (1.7% in the Composite CPI and 0.3% in the CPI(A)).
On the other hand, year-on-year declines in prices were recorded in August 2007 for durable goods (-4.1% in the Composite CPI and -4.9% in the CPI(A)) and electricity, gas and water (-2.4% in both the Composite CPI and CPI(A)).
As for housing, the Composite CPI rose only by 0.4% over a year earlier and the CPI(A) fell by 2.6%, as affected by the rates concession and public housing rental cut. For alcoholic drinks and tobacco, the Composite CPI fell by 0.9% over a year earlier but the CPI(A) rose by 0.3%; and for transport, the Composite CPI fell by 0.1% over a year earlier but the CPI(A) rose by 0.2%.
Taking the first eight months of 2007 together, the Composite CPI rose by 1.5% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 0.6%, 1.7% and 2.3%. Netting out the effect of the one-off measures of public rental waiver in February this year and the rates concession, the Composite CPI, CPI(A), CPI(B) and CPI(C) rose by 2.5%, 2.2%, 2.4% and 2.9% respectively in the first eight months of 2007 over a year earlier.
For the 3 months ended August 2007, the Composite CPI rose by 1.5% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 0.8%, 1.6% and 2.1% respectively.
For the 12 months ended August 2007, the Composite CPI was on average 1.7% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.0%, 1.8% and 2.4%.
Commentary
A Government spokesman pointed out that the higher rate of increase in the Composite CPI in August was mainly caused by enlarged increases across the prices of a broad range of basic food items as well as in the charges for meals bought away from home. Yet the underlying inflation rate at 2.7% was still rather moderate.
The spokesman added that looking ahead, higher food prices will continue to pose an upside risk to inflation. With the favourable effect of the rates concession fading out after September, the headline inflation rate is expected to edge higher in the fourth quarter. Nevertheless, the recent cut in public housing rentals and sustained labour productivity growth will provide some cushioning effect.
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 2007 issue of the Monthly Report on the Consumer Price Index free of charge at the Website of the C&SD (www.censtatd.gov.hk/products_and_services/ products/publications/index.jsp). Print version of this publication is available for sale at HK$49 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 (www.statisticalbookstore.gov.hk) and the Government Bookstore of the Information Services Department (www.bookstore.gov.hk). 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, September 20, 2007
Issued at HKT 16:21
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