**************************************
The Census and Statistics Department (C&SD) released today (September 22) the Consumer Price Index (CPI) figures for August 2011. According to the Composite CPI, overall consumer prices rose by 5.7% in August 2011 over the same month a year earlier, smaller than the corresponding increase (7.9%) in July 2011. The larger increase in July 2011 was attributable to the low base of comparison arising from the Government's payment of public housing rentals in July 2010, and such effect did not come into play in August 2011. 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 2011 was 6.3%, larger than that in July (5.8%), mainly due to the enlarged increases in private housing rentals, as well as the charges for package tours and prices of fresh vegetables.
On a seasonally adjusted basis, the average monthly rate of change in the Composite CPI for the three-month period from June to August 2011 was -0.6%, and the corresponding rate of change for the three-month period from May to July 2011 was 0.3%. Netting out the effects of all Government's one-off relief measures, the average monthly rate of increase in the Composite CPI for the three-month period from June to August 2011 was 0.5%, the same as that for the three-month period from May to July 2011.
Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 5.4%, 5.8% and 6.0% respectively in August 2011, which compared to 12.5%, 6.2% and 5.4% 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 all 6.3% in August 2011, which compared to 5.9%, 5.8% and 5.7% respectively in July.
On a seasonally adjusted basis, for the three-month period from June to August 2011, the average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) were -2.3%, virtually nil and 0.4% respectively. The corresponding rates of increase for the three-month period from May to July 2011 were 0.1%, 0.3% and 0.4%. Netting out the effects of all Government's one-off relief measures, the corresponding average monthly rates of increase in the seasonally adjusted CPI(A), CPI(B) and CPI(C) for the three-month period from June to August 2011 were 0.4%, 0.5% and 0.5% respectively, and the corresponding rates of change for the three-month period from May to July 2011 were all 0.5%.
Amongst the various CPI components, year-on-year increases in prices were recorded in August 2011 for alcoholic drinks and tobacco (20.3% in the Composite CPI and 22.6% in the CPI(A), mainly due to the increase in tobacco duty by 41.5%); food (excluding meals bought away from home) (11.7% in the Composite CPI and 12.2% in the CPI(A)); housing (8.3% in the Composite CPI and 8.2% in the CPI(A)); clothing and footwear (7.5% in the Composite CPI and 6.8% in the CPI(A)); meals bought away from home (5.7% in the Composite CPI and 5.9% in the CPI(A)); transport (4.9% in the Composite CPI and 3.7% in the CPI(A)); miscellaneous goods (4.6% in the Composite CPI and 3.5% in the CPI(A)) and miscellaneous services (4.0% in the Composite CPI and 2.2% in the CPI(A)).
On the other hand, year-on-year decrease in prices were recorded in August 2011 for electricity, gas and water (-16.2% in the Composite CPI and -18.8% in the CPI(A), largely as a result of the Government's electricity charge subsidy) and durable goods (-3.2% in the Composite CPI and -3.8% in the CPI(A)).
Taking the first eight months of 2011 together, the Composite CPI rose by 5.1% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 5.8%, 4.8% and 4.6%. Netting out the effects of all Government's one-off relief measures, the Composite CPI, CPI(A), CPI(B) and CPI(C) rose by 4.8%, 4.9%, 4.7% and 4.7% respectively in the first eight months of 2011 over a year earlier.
For the three months ended August 2011, the Composite CPI rose by 6.4% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 7.9%, 5.8% and 5.6% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 5.8%, 5.9%, 5.9% and 5.8% respectively.
For the 12 months ended August 2011, the Composite CPI was on average 4.3% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 4.9%, 4.0% and 3.9%. The corresponding increases after netting out the effects of all Government's one-off relief measures were 4.0%, 4.1%, 3.9% and 3.9% respectively.
The new 2009/10-based CPI series, as was first announced by the C&SD on April 28, 2011, is compiled on the basis of the expenditure patterns obtained from the Household Expenditure Survey (HES) conducted during October 2009 to September 2010. It replaces the old 2004/05-based series for analysing consumer price changes. The old series will continue to be compiled in parallel with the new series until the reference month of December 2011. 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 spokesman said that inflation pressures continued to increase in August, as indicated by the further rise in the underlying inflation rate, which is more indicative of the economic forces at work than the headline rate. Private housing rentals and food prices remained the two major contributory factors.
The spokesman commented further that inflation is likely to climb up further in the coming months before peaking out, as the lagged effects from earlier surges in international food prices and fresh letting private residential rentals will continue to filter through. The Government will closely monitor the local inflation situation, particularly its impact on the lower-income people.
Further information
The CPIs and year-on-year rates of change at section level for August 2011 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 three 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 2011 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).
For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD at telephone No. 2805 6403 or e-mail address cpi@censtatd.gov.hk.
Ends/Thursday, September 22, 2011
Issued at HKT 16:30
NNNN
