************************************
The Census and Statistics Department (C&SD) released today (August 21) the Consumer Price Index (CPI) figures for July 2012. According to the Composite CPI, overall consumer prices rose by 1.6% in July 2012 over the same month a year earlier, smaller than the corresponding increase (3.7%) in June 2012, as affected by the Government's payment of public housing rentals in July 2012. 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 2012 was 4.2%, also smaller than that in June (4.5%), mainly due to the smaller increases in private housing rentals and the decreases in the prices of pork.
On a seasonally adjusted basis, the average monthly rate of change in the Composite CPI for the three-month period from May to July 2012 was -0.7%, which compared to 0.2% for the three-month period from April to June 2012. 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 2012 was 0.1%, and that for the three-month period from April to June 2012 was 0.2%.
Analysed by sub-index, the year-on-year rates of change in the CPI(A), CPI(B) and CPI(C) were -2.4%, 3.5% and 3.7% respectively in July 2012, which compared to 3.3%, 4.0% and 3.7% 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 4.3%, 4.4% and 3.8% respectively in July 2012, which compared to 4.7%, 4.7% and 4.2% respectively in June.
On a seasonally adjusted basis, for the three-month period from May to July 2012, the average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) were -2.0%, -0.2% and 0.1% respectively. The corresponding rates of change for the three-month period from April to June 2012 were all 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 2012 were all 0.1%, and the corresponding rates of change for the three-month period from April to June 2012 were all 0.2%.
Amongst the various CPI components, year-on-year increases in prices were recorded in July 2012 for food (excluding meals bought away from home) (6.6% in both the Composite CPI and CPI(A)); meals bought away from home (5.4% in the Composite CPI and 5.7% in the CPI(A)); electricity, gas and water (3.4% in the Composite CPI and 2.8% in the CPI(A)); clothing and footwear (2.4% in the Composite CPI and 2.6% in the CPI(A)); transport (2.3% in both the Composite CPI and CPI(A)); miscellaneous services (2.2% in the Composite CPI and 1.3% in the CPI(A)); miscellaneous goods (1.7% in the Composite CPI and 2.2% in the CPI(A)) and alcoholic drinks and tobacco (0.1% in the Composite CPI and 0.5% in the CPI(A)).
On the other hand, year-on-year decrease in prices were recorded in July 2012 for housing (-2.2% in the Composite CPI and -14.8% in the CPI(A), due mainly to the Government's payment of public housing rentals in July 2012) and durable goods (-0.9% in the Composite CPI and -1.2% in the CPI(A)).
Taking the first seven months of 2012 together, the Composite CPI rose by 4.3% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 3.2%, 4.8% and 4.7%. Netting out the effects of all Government's one-off relief measures, the Composite CPI, CPI(A), CPI(B) and CPI(C) rose by 5.3%, 5.3%, 5.5% and 5.0% respectively in the first seven months of 2012 over a year earlier.
For the three months ended July 2012, the Composite CPI rose by 3.2% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 1.6%, 4.0% and 4.0% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 4.6%, 4.7%, 4.8% and 4.2% respectively.
For the 12 months ended July 2012, the Composite CPI was on average 4.9% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 4.1%, 5.3% and 5.3%. The corresponding increases after netting out the effects of all Government's one-off relief measures were 5.7%, 5.7%, 5.9% and 5.5% respectively.
Commentary
A Government spokesman said that inflationary pressures continued to ease in July. On a year-on-year basis, the increases in both food prices and private housing rentals moderated further. The more notable decline in the year-on-year rate of headline inflation in July was also due to the Government's payment of public housing rentals, which did not take place in the same month last year.
The spokesman commented further that, given the more difficult economic environment as well as the deceleration of import prices, inflation is likely to recede further in the coming months. Nonetheless, the recent rebound in global commodity and food prices is a development to watch over. The Government will continue to closely monitor the 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 July 2012 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 2012 issue of the Monthly Report on the Consumer Price Index free of charge at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp270.jsp?productCode=B1060001).
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/Tuesday, August 21, 2012
Issued at HKT 16:30
NNNN