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The Census and Statistics Department (C&SD) released today (November 22) the Consumer Price Index (CPI) figures for October 2010. According to the Composite CPI, overall consumer prices rose by 2.6% in October 2010 over the same month a year earlier, same as that in September. 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 October 2010 was 2.3%, slightly higher than that in September (2.2%), mainly due to the enlarged increases in private housing rentals and the prices of food (excluding meals bought away from home).
On a seasonally adjusted basis, the average monthly rate of change in the Composite CPI for the 3-month period from August to October 2010 was 0.8%, which compared to -0.4% for the 3-month period from July to September 2010. 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 August to October 2010 was 0.3%, and that for the 3-month period from July to September 2010 was 0.2%.
Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 3.1%, 2.5% and 2.0% respectively in October 2010, which compared to 3.2%, 2.5% and 2.0% respectively in September. 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 2.5%, 2.3% and 2.0% respectively in October 2010, which compared to 2.4%, 2.2% and 1.9% respectively in September.
On a seasonally adjusted basis, for the 3-month period from August to October 2010, the average monthly rates of increase in the seasonally adjusted CPI(A), CPI(B) and CPI(C) were 1.8%, 0.5% and 0.2% respectively. The corresponding rates of change for the 3-month period from July to September 2010 were -1.1%, -0.1% and 0.1%. 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 August to October 2010 were 0.3%, 0.2% and 0.2% respectively, and for the 3-month period from July to September 2010 were 0.3%, 0.2% and 0.1% respectively.
Amongst the various CPI components, year-on-year increases in prices were recorded in October 2010 for electricity, gas and water (15.7% in the Composite CPI and 22.1% in the CPI(A) , mainly because some households had used up the full amount of Government¡¯s one-off electricity charge subsidy); food (excluding meals bought away from home) (5.7% in the Composite CPI and 5.6% in the CPI(A)); miscellaneous goods (3.3% in the Composite CPI and 3.1% in the CPI(A)); transport (2.7% in the Composite CPI and 1.6% in the CPI(A)); miscellaneous services (2.4% in the Composite CPI and 1.9% in the CPI(A)); meals bought away from home (1.9% in both the Composite CPI and CPI(A)); housing (1.7% in the Composite CPI and 2.1% in the CPI(A)) and alcoholic drinks and tobacco (1.1% in the Composite CPI and 0.9% in the CPI(A)).
On the other hand, year-on-year decreases in prices were recorded in October 2010 for durable goods (-3.1% in the Composite CPI and -2.6% in the CPI(A)) and clothing and footwear (-0.4% in both the Composite CPI and CPI(A)).
Taking the first ten months of 2010 together, the Composite CPI rose by 2.3% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 2.6%, 2.3% and 2.0%. Netting out the effects of all Government¡¯s one-off relief measures, the Composite CPI, CPI(A), CPI(B) and CPI(C) all rose by 1.5% in the first ten months of 2010 over a year earlier.
For the 3 months ended October 2010, the Composite CPI rose by 2.7% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 3.3%, 2.7% and 2.2% respectively. The corresponding increases after netting out the effects of all Government¡¯s one-off relief measures were 2.1%, 2.2%, 2.1% and 1.9% respectively.
For the 12 months ended October 2010, the Composite CPI was on average 2.1% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.4%, 2.1% and 1.7%. The corresponding increases after netting out the effects of all Government¡¯s one-off relief measures were 1.3%, 1.3%, 1.3% and 1.2% respectively.
Commentary
A Government spokesman says that underlying consumer price inflation edged up slightly in October, as rising rentals continued to feed through and as import prices rose further.
The spokesman adds that inflation in Hong Kong is likely to go up further in the near term, along with the rise-back in domestic costs, as well as greater external cost pressures from the regional wide increase in inflation in Asia. The new round of quantitative easing in the US will also pose upside risks to inflation. Nevertheless, the sustained productivity growth in the economy should provide a partial offset.
Further information
The CPIs and year-on-year rates of change at section level for October 2010 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 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 and seasonally adjusted data series) are available in the monthly reports. Users can download the October 2010 issue of the Monthly Report on the Consumer Price Index free of charge at the website of the C&SD (www.censtatd.gov.hk/products_and_services/products/publications/
statistical_report/prices_household_expenditure/index.jsp). Print version of this publication is available for sale at HK$63 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 the publication is also available for sale online at the Government Bookstore of the Information Services Department (www.bookstore.gov.hk).
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/Monday, November 22, 2010
Issued at HKT 16:31
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