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The Census and Statistics Department (C&SD) released today (February 21) the Consumer Price Index (CPI) figures for January 2006. According to the Composite CPI, overall consumer prices rose by 2.6% in January 2006 over a year earlier, larger than the 1.8% increase in December 2005.
2. The larger year-on-year increase in the Composite CPI in January 2006 than in December 2005 was mainly attributable to the enlarged increase in the charges for package tours, prices of basic foodstuffs and inbound and outbound transport fares around the Lunar New Year Festival, which fell in January this year but in February last year. Also contributed were the larger increases in private housing rentals as well as the prices of jewellery.
3. Analysed by sub-index and on a year-on-year comparison, the CPI(A), CPI(B) and CPI(C) rose by 2.3%, 2.7% and 2.8% respectively in January 2006, also larger than the corresponding increases of 1.7%, 1.9% and 1.9% in December 2005.
4. 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 January 2006, the average monthly rates of increase in the seasonally adjusted Composite CPI, CPI(A), CPI(B) and CPI(C) were all 0.2%, same as those for the 3-month period ended December 2005.
5. Amongst the various CPI components, year-on-year increases in prices were recorded in January 2006 for miscellaneous goods (5.7% in the Composite CPI and 2.6% in the CPI(A)), housing (3.7% in the Composite CPI and 3.0% in the CPI(A)), food (excluding meals bought away from home) (3.4% in the Composite CPI and 3.9% in the CPI(A)), miscellaneous services (3.3% in the Composite CPI and 2.8% in the CPI(A)), electricity, gas and water (3.2% in the Composite CPI and 3.0% in the CPI(A)), transport (2.7% in the Composite CPI and 2.4% in the CPI(A)) and meals bought away from home (1.4% in the Composite CPI and 1.6% in the CPI(A)).
6. On the other hand, year-on-year declines in prices were recorded in January 2006 for clothing and footwear (-2.4% in the Composite CPI and -2.2% in the CPI(A)), durable goods (-1.7% in the Composite CPI and -1.5% in the CPI(A)) and alcoholic drinks and tobacco (-0.3% in both the Composite CPI and CPI(A)).
7. For the three months ended January 2006, the Composite CPI rose by 2.0% from a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 1.9%, 2.1% and 2.1%.
8. For the 12 months ended January 2006, the Composite CPI was on average 1.4% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.4%, 1.4% and 1.3%.
Commentary
9. A Government Secretariat spokesman noted that the faster year-on-year increase in the Composite CPI in January 2006 was mainly due to the distortion introduced by the Lunar New Year holidays, when prices of many consumer goods and services such as foodstuffs, meals out, package tours, hair dressing and outbound transport fares rose to their seasonal highs. In 2005, the Lunar New Year holidays fell in February. Discounting the Lunar New Year effect, the increase in the Composite CPI in January would have been much more moderate. As the economy has been expanding briskly, there will continue to be upward pressures on domestic prices. Yet with the continued expansion in production capacity brought about by rising productivity and with the strengthening of the US dollar over the past year, such upward pressures would be mitigated to some extent.
Further information
10. 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.
11. The January 2006 issue of the Monthly Report on the Consumer Price Index is now on sale at HK$41 per issue. Both print version and download version of the publication can be purchased online at the "Statistical Bookstore, Hong Kong" (http://www.statisticalbookstore.gov.hk). Download version of the publication can be purchased at 75% of its original price exclusively at the online Statistical Bookstore. Print version if purchased online is also offered a discount, at 85% of its original price at the Statistical Bookstore as well as the Government Bookstore (http://www.isd.gov.hk/eng/bookorder.htm). For purchase of print version, this can be done through mail order by returning a completed order form which can be downloaded from the C&SD's website (http://www.censtatd.gov.hk/eng/prod_serv/forms_index.html). Purchase can also be made in person at the Publications Unit of the C&SD (Address : 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel. : 2582 3025).
12. For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD at telephone 2805 6403 or email address cpi@censtatd.gov.hk.
Ends/Tuesday, February 21, 2006
Issued at HKT 16:15
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