****************************************
The Census and Statistics Department (C&SD) released today (March 22) the Consumer Price Index (CPI) figures for February 2007. According to the Composite CPI, overall consumer prices rose by 0.8% in February 2007 over a year earlier, smaller than the 2.0% increase in January.
The smaller year-on-year increase in the Composite CPI in February 2007 than in January was attributable to the waiver of public housing rentals by the Housing Authority and Housing Society for the month of February 2007. Netting out this factor, the year-on-year increase in the Composite CPI was 3.1%. The larger increase than in January was mainly attributable to the price increases in the charges of package tour and food around the Lunar New Year holidays, which occurred in February this year but in January last year.
Analysed by sub-index, the year-on-year rates of change in the CPI(A), CPI(B) and CPI(C) were -3.2%, +2.1% and +3.6% respectively in February 2007, which compared to +1.8%, +1.9% and +2.3% respectively in January. Netting out the effect of public housing rental waiver in February 2007, the year-on-year rates of change in the CPI(A), CPI(B) and CPI(C) were +2.6%, +3.2% and +3.6% respectively. There was no effect on the CPI(C) as public housing rental is not a constituent of this sub-index.
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 February 2007, the average monthly rates of change in the seasonally adjusted Composite CPI, CPI(A), CPI(B) and CPI(C) were -0.5%, -1.6%, -0.1% and +0.3% respectively. The corresponding rates of change for the 3-month period ended January 2007 were +0.3%, +0.2%, +0.3% and +0.3%.
Amongst the various CPI components, year-on-year increases in prices were recorded in February 2007 for clothing and footwear (7.8% in the Composite CPI and 6.1% in the CPI(A)), food (excluding meals bought away from home) (5.3% in the Composite CPI and 5.6% in the CPI(A)), miscellaneous services (4.4% in the Composite CPI and 2.3% in the CPI(A)), miscellaneous goods (3.0% in both the Composite CPI and CPI(A)) and meals bought away from home (2.1% in the Composite CPI and 1.7% in the CPI(A)).
On the other hand, year-on-year declines in prices were recorded in February 2007 for durable goods (-5.6% in the Composite CPI and -6.1% in the CPI(A)), alcoholic drinks and tobacco (-4.1% in both the Composite CPI and CPI(A)), housing (-2.8% in the Composite CPI and -14.4% in the CPI(A)) and electricity, gas and water (-1.1% in the Composite CPI and -1.3% in the CPI(A)).
As for transport, prices fell by 0.2% in the Composite CPI but remained unchanged in the CPI(A).
Taking the first two months of 2007 together, the Composite CPI rose by 1.4% over a year earlier. The corresponding changes in the CPI(A), CPI(B) and CPI(C) were -0.7%, +1.9% and +3.0%.
For the 3 months ended February 2007, the Composite CPI rose by 1.7% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 0.2%, 2.0% and 2.9% respectively.
For the 12 months ended February 2007, the Composite CPI was on average 2.0% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.4%, 2.1% and 2.4%.
Commentary
A Government spokesman pointed out that the lower rate of increase in the Composite CPI in February was caused by the waiving of public housing rentals, which pushed down the index by around 2.3 percentage points in that month, far outweighing the lifting effect stemming from the difference in timing of the Lunar New Year in 2006 and 2007. Discounting the influences of these two special factors, the Composite CPI rose by around 2.5% year-on-year in the first two months of this year, representing a moderate creep up of inflation as compared with 2.3% in December 2006.
The spokesman foresaw that the sustained labour productivity growth should help to contain inflationary pressures, providing an offset to the expected modest pick-up in imported inflation due to a weak US dollar and renminbi appreciation. Also, the Budget measure of rates waiver for two quarters and other one-off measures would help to push down the headline CPI in 2007.
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 February 2007 issue of the Monthly Report on the Consumer Price Index free of charge at the "Statistical Bookstore, Hong Kong" (www.statisticalbookstore.gov.hk) of the C&SD. 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 and the Government Bookstore of the Information Services Department (www.isd.gov.hk/eng/bookorder.htm). 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/Thursday, March 22, 2007
Issued at HKT 16:15
NNNN