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The Census and Statistics Department (C&SD) released today (July 20) the Consumer Price Index (CPI) figures for June 2007. According to the Composite CPI, overall consumer prices rose by 1.3% in June 2007 over a year earlier, larger than the 1.2% increase in May.
The larger year-on-year increase in the Composite CPI in June 2007 than in May was mainly due to the enlarged increase in the prices of pork.
Meanwhile, the Budget measure of rates concession for the first two quarters of 2007/08 (i.e. April to September 2007) continued to carry effect in June. Netting out this factor, the year-on-year increase in the Composite CPI was 2.4%. This measure would continue to carry impact on the CPI until September this year.
Analysed by sub-index, the year-on-year rates of change in the CPI(A), CPI(B) and CPI(C) were +0.8%, +1.4% and +1.9% respectively in June 2007, which compared to +0.7%, +1.3% and +1.7% respectively in May. Netting out the effect of the rates concession, the year-on-year changes in the CPI(A), CPI(B) and CPI(C) were +2.2%, +2.4% and +2.7% respectively in June.
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 June 2007, the average monthly rates of change in the seasonally adjusted Composite CPI, CPI(A), CPI(B) and CPI(C) were -0.1%, -0.2%, -0.1% and +0.1% respectively. The corresponding rates of change for the 3-month period ended May 2007 were +0.6%, +1.7%, +0.2% and -0.1%.
Amongst the various CPI components, year-on-year increases in prices were recorded in June 2007 for food (excluding meals bought away from home) (4.5% in the Composite CPI and 4.7% in the CPI(A)), clothing and footwear (4.0% in the Composite CPI and 1.5% in the CPI(A)), meals bought away from home (2.0% in the Composite CPI and 1.7% in the CPI(A)), miscellaneous services (1.9% in the Composite CPI and 0.5% in the CPI(A)) and miscellaneous goods (1.8% in the Composite CPI and 1.9% in the CPI(A)).
On the other hand, year-on-year declines in prices were recorded in June 2007 for durable goods (-4.5% in the Composite CPI and -4.9% in the CPI(A)), alcoholic drinks and tobacco (-2.4% in the Composite CPI and -1.3% in the CPI(A)) and electricity, gas and water (-1.5% in the Composite CPI and -1.6% in the CPI(A)).
As for housing, the Composite CPI rose by 1.0% over a year earlier but the CPI(A) fell by 0.3%. However, for transport, the Composite CPI fell by 0.2% over a year earlier but the CPI(A) rose by 0.3%.
For the first half of 2007 as a whole, the Composite CPI rose by 1.5% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 0.5%, 1.7% and 2.3%.
In the second quarter of 2007, the Composite CPI rose by 1.3% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 0.7%, 1.3% and 1.8% respectively.
For the 12 months ended June 2007, 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 1.2%, 2.0% and 2.4%.
Commentary
A Government spokesman pointed out that the consistently low headline consumer price inflation in June was due to the rates concession which would take effect until September this year. Discounting the rates concession, the underlying consumer price inflation edged up marginally in June, yet at a still moderate rate. The spokesman explained that the slight creep up was mainly due to the food price hikes in pork as a result of supply shortage.
The spokesman believed that rising food prices and its volatility would continue to play a bigger role in affecting inflation in the near term. However, the rates concession for the third quarter and other one-off measures to be introduced later in the year would continue to keep the inflation number down in the second half of the year. Moreover, rapid labour productivity growth should provide some cushion against overall inflationary pressures.
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 June 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/Friday, July 20, 2007
Issued at HKT 16:15
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