*************************************
The Census and Statistics Department (C&SD) released today (May 21) the Consumer Price Index (CPI) figures for April 2007. According to the Composite CPI, overall consumer prices rose by 1.3% in April 2007 over a year earlier, smaller than the 2.4% increase in March.
The smaller year-on-year increase in the Composite CPI in April 2007 than in March was mainly attributable to the Budget measure of rates concession for the first two quarters of 2007/08 (i.e. April to September 2007). Netting out this factor, the year-on-year increase in the Composite CPI was 2.4%, same as the increase in March. This measure would continue to carry impact on the CPI until September this year.
Analysed by sub-index and on a year-on-year comparison, the CPI(A), CPI(B) and CPI(C) rose by 0.7%, 1.3% and 1.9% respectively in April 2007. Netting out the effect of the rates concession, the year-on-year increases in the CPI(A), CPI(B) and CPI(C) were 2.1%, 2.3% and 2.8% respectively in April, similar to the corresponding increases of 2.2%, 2.3% and 2.7% in March.
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 April 2007, the average monthly rates of change in the seasonally adjusted Composite CPI, CPI(A), CPI(B) and CPI(C) were -0.2%, -0.3%, -0.2% and -0.1% respectively. The corresponding rates of change for the 3-month period ended March 2007 were all +0.2%.
Amongst the various CPI components, year-on-year increases in prices were recorded in April 2007 for food (excluding meals bought away from home) (4.3% in the Composite CPI and 4.5% in the CPI(A)), clothing and footwear (4.1% in the Composite CPI and 2.4% in the CPI(A)), miscellaneous services (2.4% in the Composite CPI and 0.9% in the CPI(A)), miscellaneous goods (2.2% in the Composite CPI and 2.5% in the CPI(A)), meals bought away from home (2.1% in the Composite CPI and 1.5% in the CPI(A)) and alcoholic drinks and tobacco (1.2% in the Composite CPI and 2.5% in the CPI(A)).
On the other hand, year-on-year declines in prices were recorded in April 2007 for durable goods (-4.9% in both the Composite CPI and CPI(A)), electricity, gas and water (-3.1% in the Composite CPI and -3.3% in the CPI(A)) and transport (-0.9% in the Composite CPI and -0.1% in the CPI(A)).
As for housing, the Composite CPI rose by 0.9% over a year earlier but the CPI(A) fell by 0.4%.
Taking the first four months of 2007 together, the Composite CPI rose by 1.6% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 0.4%, 1.8% and 2.6%.
For the 3 months ended April 2007, the Composite CPI rose by 1.5% over a year earlier, The corresponding changes in the CPI(A), CPI(B) and CPI(C) were -0.1%, +1.8% and +2.7%.
For the 12 months ended April 2007, the Composite CPI was on average 2.0% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.4%, 2.1% and 2.5%.
Commentary
A Government spokesman pointed out that the smaller rate of consumer price inflation in April was due to the rates concession, which would continue to carry impact on consumer price inflation until September this year. Discounting this effect, the rate of increase in the Composite CPI in April was the same as that in March at 2.4%, which was still moderate. The higher charges for package tours in April were effectively offset by the moderating rise in food prices and the decline in towngas charges. In sum, the underlying inflationary pressures were still largely kept in check.
The spokesman foresaw that the sustained rapid growth in labour productivity was likely to provide some cushioning to overall inflationary pressures. On top of this, the Budget measure of rates waiver until September this year and other one-off measures will continue to keep the headline inflation down in the coming months.
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 April 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 Tel: 2805 6403 or email address: cpi@censtatd.gov.hk.
Ends/Monday, May 21, 2007
Issued at HKT 16:15
NNNN
