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The Census and Statistics Department (C&SD) released today (August 20) the Consumer Price Index (CPI) figures for July 2010. According to the Composite CPI, overall consumer prices rose by 1.3% in July 2010 over the same month a year earlier, smaller than the corresponding increase (2.8%) in June 2010, as affected by the Government's payment of public housing rentals in July 2010. 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 July 2010 was 1.9%, larger than that in June (1.7%), mainly due to the enlarged increases in the prices of food (excluding meals bought away from home) and private housing rentals.
On a seasonally adjusted basis, the average monthly rate of change in the Composite CPI for the three-month period from May to July 2010 was -0.5%, which compared to 0.1% for the three-month period from April to June 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 three-month period from May to July 2010 was 0.1%, the same as that for the three-month period from April to June 2010.
Analysed by sub-index, the year-on-year rates of change in the CPI(A), CPI(B) and CPI(C) were -0.8%, 2.1% and 2.6% respectively in July 2010, which compared to 3.2%, 2.7% and 2.4% respectively in June. 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%, 2.0% and 2.0% respectively in July 2010, which compared to 1.6%, 1.7% and 1.9% respectively in June.
On a seasonally adjusted basis, for the three-month period from May to July 2010, the average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) were -1.3%, -0.2% and virtually nil respectively. The corresponding rates of change for the three-month period from April to June 2010 were 0.1%, 0.1% and 0.2%. 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 three-month period from May to July 2010 were 0.1%, 0.1% and virtually nil respectively, and the corresponding rates of change for the three-month period from April to June 2010 were 0.1%, 0.1% and 0.2% respectively.
Amongst the various CPI components, year-on-year increases in prices were recorded in July 2010 for electricity, gas and water (62.8% in the Composite CPI and 73.5% 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) (3.8% in the Composite CPI and 3.7% in the CPI(A)); miscellaneous goods (2.6% in the Composite CPI and 2.5% in the CPI(A)); miscellaneous services (2.4% in the Composite CPI and 1.4% in the CPI(A)); transport (2.2% in the Composite CPI and 1.5% in the CPI(A)); clothing and footwear (2.2% in the Composite CPI and 0.9% in the CPI(A)); meals bought away from home (1.9% in the Composite CPI and 1.8% in the CPI(A)) and alcoholic drinks and tobacco (0.5% in both the Composite CPI and CPI(A)).
On the other hand, year-on-year decline in prices were recorded in July 2010 for housing (-4.6% in the Composite CPI and -13.0% in the CPI(A), due to the Government's payment of public housing rentals in July 2010) and durable goods (-2.0% in the Composite CPI and -2.2% in the CPI(A)).
Taking the first seven months of 2010 together, the Composite CPI rose by 2.1% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 2.3%, 2.2% and 1.9%. Netting out the effects of all Government's one-off relief measures, the Composite CPI, CPI(A), CPI(B) and CPI(C) all rose by 1.3% in the first seven months of 2010 over a year earlier.
For the three months ended July 2010, the Composite CPI rose by 2.2% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 1.8%, 2.4% and 2.4% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.7%, 1.6%, 1.7% and 1.9% respectively.
For the 12 months ended July 2010, the Composite CPI was on average 1.5% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.8%, 1.4% and 1.1%. The corresponding increases after netting out the effects of all Government's one-off relief measures were all 0.7%.
Commentary
A Government spokesman says that headline consumer price inflation went down notably in July, due to the Government's provision of two-month payment for public housing tenants which started in July. Netting out the effect of all the Government's one-off measures, underlying consumer price inflation on a year-on-year basis went up slightly in July amid an on-going broadly-based economic recovery.
The spokesman adds that looking ahead, the economy will continue to face some upward price pressures from both the domestic and external fronts. The increases in private housing rentals and food prices will pose upside risks to inflation. Nevertheless, the sustained productivity growth in the economy should help to alleviate part of the domestic cost pressures.
Further information
The CPIs and year-on-year rates of change at section level for July 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 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 July 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/Friday, August 20, 2010
Issued at HKT 16:31
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