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The Census and Statistics Department (C&SD) released today (September 21) the Consumer Price Index (CPI) figures for August 2010. According to the Composite CPI, overall consumer prices rose by 3.0% in August 2010 over the same month a year earlier, larger than the corresponding increase (1.3%) in July 2010. The larger increase was mainly attributable to the difference in timing in respect of the Government's payment of public housing rentals, which was implemented in July and August in 2010, but in August and September last year. Netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in August 2010 was 1.9%, same as that in July.
On a seasonally adjusted basis, the average monthly rate of change in the Composite CPI for the 3-month period from June to August 2010 was -0.5%, the same as that for the 3-month period from May to July 2010. Netting out the effects of all Government's one-off relief measures, the average monthly rate of change in the Composite CPI for the 3-month period from June to August 2010 was virtually nil, and the corresponding rate of change for the 3-month period from May to July 2010 was 0.1%.
Analysed by sub-index, the year-on-year rates of change in the CPI(A), CPI(B) and CPI(C) were 3.6%, 3.0% and 2.5% respectively in August 2010, which compared to -0.8%, 2.1% and 2.6% respectively in July. Netting out the effects of all Government's one-off relief measures, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 1.8%, 1.9% and 1.9% respectively in August 2010, which compared to 1.8%, 2.0% and 2.0% respectively in July.
On a seasonally adjusted basis, for the 3-month period from June to August 2010, the average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) were -1.4%, -0.2% and virtually nil respectively. The corresponding rates of change for the 3-month period from May to July 2010 were -1.3%, -0.2% 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 June to August 2010 were 0.1%, virtually nil and virtually nil respectively, and the corresponding rates of change for the 3-month period from May to July 2010 were 0.1%, 0.1% and virtually nil respectively.
Amongst the various CPI components, year-on-year increases in prices were recorded in August 2010 for electricity, gas and water (60.3% in the Composite CPI and 70.3% in the CPI(A), mainly because some households had used up the full amount of Government's one-off electricity charge subsidy); food (excluding meals bought away from home) (3.3% in the Composite CPI and 3.2% in the CPI(A)); miscellaneous services (2.7% in the Composite CPI and 1.8% in the CPI(A)); miscellaneous goods (2.6% in the Composite CPI and 2.4% in the CPI(A)); clothing and footwear (2.5% in the Composite CPI and 1.7% in the CPI(A)); meals bought away from home (1.9% in the Composite CPI and 1.8% in the CPI(A)); transport (1.8% in the Composite CPI and 1.3% in the CPI(A)); housing (1.0% in the Composite CPI and 1.2% in the CPI(A)) and alcoholic drinks and tobacco (0.3% in the Composite CPI and 0.5% in the CPI(A)).
On the other hand, year-on-year decline in prices was recorded in August 2010 for durable goods (-2.5% in the Composite CPI and -2.3% in the CPI(A)).
Taking the first eight months of 2010 together, the Composite CPI rose by 2.2% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 2.4%, 2.3% and 2.0%. Netting out the effects of all Government's one-off relief measures, the Composite CPI, CPI(A), CPI(B) and CPI(C) rose by 1.3%, 1.3%, 1.3% and 1.4% respectively in the first eight months of 2010 over a year earlier.
For the 3 months ended August 2010, the Composite CPI rose by 2.4% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 2.0%, 2.6% and 2.5% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.8%, 1.8%, 1.9% and 2.0% respectively.
For the 12 months ended August 2010, the Composite CPI was on average 1.9% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.3%, 1.8% and 1.4%. The corresponding increases after netting out the effects of all Government's one-off relief measures were 0.9%, 0.9%, 0.9% and 0.8% respectively.
Commentary
A Government spokesman says that the higher headline consumer price inflation in August than in July was mainly due to the difference in timing of the Government's payment for public housing rentals. Netting out the effect of all Government's one-off measures, underlying consumer price inflation, which is a more accurate indicator of the economic forces at work, held steady at 1.9% in August, same as in July.
The spokesman adds that looking forward, there are some upside risks to inflation, especially if the economy continues to grow briskly and labour market conditions improve further. Higher import prices, along with rising global food prices, may also add to imported inflation. Nevertheless, the sustained growth in labour productivity is likely to provide some cushioning to the overall inflationary pressures.
Further information
The CPIs and year-on-year rates of change at section level for August 2010 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 and the underlying inflation rate 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 August 2010 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$63 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 the 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, September 21, 2010
Issued at HKT 16:30
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