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The Census and Statistics Department (C&SD) released today (July 21) the Consumer Price Index (CPI) figures for June 2009. According to the Composite CPI, overall consumer prices fell by 0.9% in June 2009 compared with the same month a year earlier. The year-on-year rates of change in the CPIs in June 2009 were affected by various Government's one-off relief measures, in particular the implementation of electricity charge subsidy. Netting out the effects of all Government's one-off relief measures, the Composite CPI registered a year-on-year rate of increase (i.e. the underlying inflation rate) at 0.4% in June 2009, smaller than that in May (1.3%), mainly due to the moderation in year-on-year increases in food prices and private housing rentals.
On a seasonally adjusted basis, the average monthly rate of change in the Composite CPI for the 3-month period from April to June 2009 was -0.1%. Netting out the effects of all Government's one-off relief measures, the average monthly rate of change in the underlying Composite CPI for the 3-month period from April to June 2009 was -0.2%, and the corresponding rate of change for the 3-month period from March to May 2009 was virtually nil.
Analysed by sub-index, the year-on-year rates of change in the headline CPI(A), CPI(B) and CPI(C) were -1.6%, -0.7% and -0.3% respectively in June 2009, which compared to -0.5%, 0.2% and 0.5% respectively in May. Netting out the effects of all Government's one-off relief measures, the CPI(A), CPI(B) and CPI(C) registered year-on-year rates of increase at 0.3%, 0.5% and 0.4% respectively in June 2009, which compared to 1.4%, 1.3% and 1.2% respectively in May. The larger difference between the change in headline and underlying CPI(A) reflected that Government's one-off relief measures had larger impacts on the lower expenditure households.
On a seasonally adjusted basis, for the 3-month period from April to June 2009, the average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) were -0.2%, -0.1% and -0.2% respectively. The corresponding rates of change for the 3-month period from March to May 2009 were 0.1%, virtually nil and virtually nil. Netting out the effects of all Government's one-off relief measures, the corresponding average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) for the 3-month period from April to June 2009 were all -0.2%, and the corresponding rates of change for the 3-month period from March to May 2009 were virtually nil, virtually nil and -0.1% respectively.
Amongst the various CPI components, large year-on-year decline in prices was recorded in June 2009 for electricity, gas and water (-42.5% in the Composite CPI and -47.5% in the CPI(A)), largely as a result of Government's electricity charge subsidy. Declines were also recorded for miscellaneous services (-3.8% in the Composite CPI and -5.0% in the CPI(A)), durable goods (-3.6% in the Composite CPI and -3.4% in the CPI(A)) and food (excluding meals bought away from home) (-0.8% in the Composite CPI and -0.9% in the CPI(A)).
On the other hand, year-on-year increases in prices were recorded in June 2009 for alcoholic drinks and tobacco (22.5% in the Composite CPI and 25.7% in the CPI(A)); housing (3.7% in the Composite CPI and 2.7% in the CPI(A)); miscellaneous goods (2.1% in the Composite CPI and 2.5% in the CPI(A)); meals bought away from home (1.3% in the Composite CPI and 1.4% in the CPI(A)) and clothing and footwear (1.3% in both the Composite CPI and CPI(A)).
As for transport, the Composite CPI fell by 1.6% over a year earlier but the CPI(A) rose by 0.2%.
For the first half of 2009 as a whole, the Composite CPI rose by 0.8% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 0.1%, 1.0% and 1.4%. Netting out the effects of all Government's one-off relief measures, the Composite CPI, CPI(A), CPI(B) and CPI(C) rose by 2.1%, 2.0%, 2.2% and 2.1% respectively in the first half of 2009 as a whole over a year earlier.
In the second quarter of 2009, the Composite CPI fell by 0.1% over a year earlier, the corresponding changes in the CPI(A), CPI(B) and CPI(C) were -0.8%, 0.1% and 0.5%. Netting out the effects of all Government's one-off relief measures, the Composite CPI, CPI(A), CPI(B) and CPI(C) rose by 1.2%, 1.1%, 1.3% and 1.1% respectively in the second quarter of 2009 over a year earlier.
For the 12 months ended June 2009, the Composite CPI was on average 2.1% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 0.9%, 2.5% and 3.0%. The corresponding increases after netting out the effects of all Government's one-off relief measures were 3.9%, 3.9%, 4.0% and 3.9% respectively.
Commentary
A Government spokesman says that consumer prices in terms of both the headline CPI and underlying CPI remained on an easing trend, as local wages and rentals continued to adjust to the economic downturn while external price pressures were absent.
The spokesman points out that for the month of June in particular, the year-on-year decline in the headline Composite CPI also reflected the effect of the electricity subsidy which pulled down the year-on-year rate of change in Composite CPI by 1.2 percentage point. Having netted out this effect, the underlying Composite CPI still rose modestly over a year earlier.
The spokesman comments further that with the economy still in a weak state and with many of Hong Kong's trading partners also experiencing price declines, price pressures from both the local and external fronts are likely to subside further in the period ahead. This is all part of a worldwide phenomenon amid the global economic recession.
Further information
The CPIs and year-on-year rates of change at section level for June 2009 are shown in Table 1. The time series on the year-on-year rates of change in the CPIs before and after removing the effects of one-off measures are shown in Table 2. For discerning the latest trend in consumer prices, it is also useful to look at the changes in the seasonally adjusted CPIs. The corresponding time series on the average monthly rates of change during the latest 3 months for the seasonally adjusted CPIs are shown in Table 3. The rates of change in the original and the seasonally adjusted Composite CPI are presented graphically in Chart 1.
More detailed CPI data (including year-on-year comparison, month-to-month comparison and seasonally adjusted data series) are available in the monthly reports. Users can download the June 2009 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/statistical_report/prices_household_expenditure/index.jsp). Print version of this publication is available for sale at HK$52 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 Government Bookstore of the Information Services Department (www.bookstore.gov.hk).
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/Tuesday, July 21, 2009
Issued at HKT 16:30
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