The Census and Statistics Department (C&SD) released today (February 21) the Consumer Price Index (CPI) figures for January 2017. According to the Composite CPI, overall consumer prices rose by 1.3% in January 2017 over the same month a year earlier, slightly larger than the corresponding increase (1.2%) in December 2016. 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 January 2017 was 2.1%, also slightly larger than that in December 2016 (2.0%), mainly due to the larger increases in the charges for package tours around Lunar New Year.

     On a seasonally adjusted basis, the average monthly rate of increase in the Composite CPI for the 3-month period from November 2016 to January 2017 was 0.1%, and that for the 3-month period from October to December 2016 was 0.2%. Netting out the effects of all Government's one-off relief measures, the average monthly rate of increase in the Composite CPI for the 3-month period from November 2016 to January 2017 was 0.1%, and that for the 3-month period from October to December 2016 was 0.2%.

     Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 0.8%, 1.3% and 1.7% respectively in January 2017, which compared to 1.1%, 1.2% and 1.3% respectively in December 2016. 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 2.3%, 2.0% and 2.1% respectively in January 2017, which compared to 2.6%, 1.9% and 1.6% respectively in December 2016.

     On a seasonally adjusted basis, for the 3-month period from November 2016 to January 2017, the average monthly rates of increase in the seasonally adjusted CPI(A), CPI(B) and CPI(C) were all 0.1%. The corresponding rates of increase for the 3-month period from October to December 2016 were all 0.2%. 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 3-month period from November 2016 to January 2017 were all 0.1%, and the corresponding rates of increase for the 3-month period from October to December 2016 were all 0.2%.

     Amongst the various CPI components, year-on-year increases in prices were recorded in January 2017 for miscellaneous services (3.6% in the Composite CPI and 3.0% in the CPI(A)), meals bought away from home (3.1% in both the Composite CPI and CPI(A)), miscellaneous goods (2.4% in the Composite CPI and 2.6% in the CPI(A)), transport (2.4% in the Composite CPI and 1.3% in the CPI(A)), food (excluding meals bought away from home) (2.3% in the Composite CPI and 2.4% in the CPI(A)) as well as alcoholic drinks and tobacco (1.6% in the Composite CPI and 2.5% in the CPI(A)).

     On the other hand, year-on-year decreases in prices were recorded in January 2017 for electricity, gas and water (-7.6% in the Composite CPI and -7.2% in the CPI(A)); durable goods (-3.9% in the Composite CPI and -4.0% in the CPI(A)) as well as clothing and footwear (-2.9% in the Composite CPI and -2.7% in the CPI(A)).

     As for housing, the Composite CPI rose by 0.3% over a year earlier but the CPI(A) fell by 0.7%.

     For the 3 months ended January 2017, the Composite CPI rose by 1.2% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 1.0%, 1.2% and 1.4% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 2.1%, 2.6%, 1.9% and 1.8% respectively.

     For the 12 months ended January 2017, the Composite CPI was on average 2.3% higher than that in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.7%, 2.2% and 2.1%. The corresponding increases after netting out the effects of all Government's one-off relief measures were 2.3%, 2.6%, 2.2% and 2.0% respectively.

Commentary

     A Government spokesman said that inflation pressure stayed moderate in January 2017. The visible year-on-year increase in the charges for package tours was due mainly to the difference in timing of the Lunar New Year, which fell in late January this year but in early February last year. This largely offset the favourable effects from the downward adjustment in the electricity charge and the smaller year-on-year increase in food prices.

     The spokesman commented further that, looking ahead, inflation pressure should stay contained in the near term, given soft import prices and moderate local cost increases. The Government will continue to monitor the inflation developments closely, particularly its impact on the lower-income people.

Further information

     The CPIs and year-on-year rates of change at section level for January 2017 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 Government's one-off relief 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 3 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, seasonally adjusted data series and the CPIs by the Classification of Individual Consumption According to Purpose (COICOP)) are available in the monthly reports. Users can download the January 2017 issue of the Monthly Report on the Consumer Price Index (www.censtatd.gov.hk/hkstat/sub/sp270.jsp?productCode=B1060001), the time series of CPIs at detailed level (www.censtatd.gov.hk/hkstat/sub/sp270.jsp?productCode=D5600001) and the time series of CPIs at COICOP division level (www.censtatd.gov.hk/hkstat/sub/sp270.jsp?productCode=D5600002) free of charge at the website of the C&SD.

     For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD at telephone no. 3903 7374 or email address cpi@censtatd.gov.hk.

Ends/Tuesday, February 21, 2017
Issued at HKT 16:30

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