Consumer Price Indices for February 2023
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     The Census and Statistics Department (C&SD) released today (March 23) the Consumer Price Index (CPI) figures for February 2023. According to the Composite CPI, overall consumer prices rose by 1.7% in February 2023 over the same month a year earlier, smaller than the corresponding increase (2.4%) in January 2023. 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 February 2023 was also 1.7%, smaller than that in January 2023 (2.4%). The smaller increase was mainly due to the high base of comparison caused by the increases in the prices of basic food in February 2022.

     It should be noted that consumer prices tend to show greater volatility in the first two months of a year due to the timing of the Lunar New Year. As the Lunar New Year fell in late January this year but in early February last year, the year-on-year comparison of the figures for January and February 2023 might have been affected by this factor to a certain extent. Taking the first two months of 2023 together to neutralise the effect of the Lunar New Year, the Composite CPI rose by 2.1% over a year earlier. Netting out the effect of all Government's one-off relief measures, the corresponding increase was also 2.1%.

     On a seasonally adjusted basis, the average monthly rate of increase in the Composite CPI for the 3-month period ending February 2023 was 0.2%, and that for the 3-month period ending January 2023 was 0.4%. Netting out the effects of all Government's one-off relief measures, the corresponding rates of increase were 0.2% and 0.4%.   

     Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 1.7%, 1.6% and 1.8% respectively in February 2023, as compared to 2.6%, 2.3% and 2.4% respectively in January 2023. 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 1.7%, 1.6% and 1.8% respectively in February 2023, as compared to 2.6%, 2.2% and 2.4% respectively in January 2023.   

     Taking the first two months of 2023 together, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 2.2%, 1.9% and 2.1% respectively. Netting out the effects of all Government's one-off relief measures, the corresponding increases were 2.1%, 1.9% and 2.0% respectively.   

     On a seasonally adjusted basis, for the 3-month period ending February 2023, the average monthly rates of increase in the seasonally adjusted CPI(A), CPI(B) and CPI(C) were 0.2%, 0.1% and 0.2% respectively. The corresponding rates of increase for the 3-month period ending January 2023 were 0.4%, 0.4% and 0.3% respectively. Netting out the effects of all Government's one-off relief measures, the average monthly rates of increase in the seasonally adjusted CPI(A), CPI(B) and CPI(C) for the 3-month period ending February 2023 were 0.2%, 0.1% and 0.2% respectively, and the corresponding rates of increase for the 3-month period ending January 2023 were 0.4%, 0.4% and 0.3% respectively.   

     Amongst the various components of the Composite CPI, year-on-year increases in prices were recorded in February 2023 for electricity, gas and water (20.7%), alcoholic drinks and tobacco (14.0%), clothing and footwear (5.5%), meals out and takeaway food (4.3%), miscellaneous services (1.8%), miscellaneous goods (0.7%), and transport (0.4%).   

     On the other hand, year-on-year decreases in the components of the Composite CPI were recorded in February 2023 for durable goods (-2.1%), basic food (-0.6%), and housing (-0.1%).   

     For the 3 months ending February 2023, the Composite CPI rose by 2.0% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 2.1%, 1.9% and 2.1% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 2.0%, 2.1%, 1.9% and 2.0% respectively.   

     For the 12 months ending February 2023, the Composite CPI was on average 2.0% higher than that in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.3%, 1.8% and 1.9% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.8%, 1.9%, 1.7% and 1.9% respectively. 

Commentary

     A Government spokesman said that taking the first two months of 2023 together to neutralise the distortions caused by the different timing of the Lunar New Year, the underlying consumer price inflation rate remained moderate at 2.1%, though edging up from 2.0% in December 2022. Prices of energy-related items soared further year-on-year, and those of clothing and footwear as well as food continued to record visible increases. Price pressures on most other major components remained broadly in check.

     Looking ahead, overall inflation could face some upward pressure, but should remain moderate in the near term. Domestic cost pressures may increase in tandem with the return of economic activities to normalcy. External price pressures should remain notable for some time, though likely see some moderation alongside easing inflation in major economies. The Government will continue to monitor the situation.

Further information

     The CPIs and year-on-year rates of change at section level for February 2023 are shown in Table 1. The time series on the year-on-year rates of change in the CPIs before and after netting out the effects of all 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 February 2023 issue of the "Monthly Report on the Consumer Price Index" (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1060001&scode=270), the time series of CPIs at detailed level (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=D5600001&scode=270), the time series of CPIs at COICOP division level (www.censtatd.gov.hk/en/web_table.html?id=510-60003) and the time series of underlying CPIs (www.censtatd.gov.hk/en/web_table.html?id=510-60002) at the website of the C&SD.

     For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD (Tel: 3903 7374 or email: cpi@censtatd.gov.hk).

Ends/Thursday, March 23, 2023
Issued at HKT 16:30

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