Consumer Price Indices for October 2016
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On a seasonally adjusted basis, the average monthly rate of increase in the Composite CPI for the 3-month period from August to October 2016 was 0.3%, and that for the 3-month period from July to September 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 August to October 2016 was 0.3%, and that for the 3-month period from July to September 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 1.1%, 1.2% and 1.4% respectively in October 2016, which compared to 3.3%, 2.5% and 2.2% 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 2.6%, 1.9% and 1.7% respectively in October 2016, which compared to 2.9%, 2.1% and 1.9% respectively in September.
On a seasonally adjusted basis, for the 3-month period from August to October 2016, the average monthly rates of increase in the seasonally adjusted CPI(A), CPI(B) and CPI(C) were 0.4%, 0.2% and 0.2% respectively. The corresponding rates of increase for the 3-month period from July to September 2016 were 0.4%, 0.2% 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 2016 were 0.4%, 0.2% and 0.2% respectively, and the corresponding rates of increase for the 3-month period from July to September 2016 were 0.4%, 0.2% and 0.1% respectively.
Amongst the various CPI components, year-on-year increases in prices were recorded in October 2016 for electricity, gas and water (4.9% in the Composite CPI and 5.4% in the CPI(A), mainly due to the low base of comparison resulted from the special fuel rebate in electricity starting from mid-August last year); meals bought away from home (3.0% in the Composite CPI and 3.3% in the CPI(A)); transport (2.4% in the Composite CPI and 1.7% in the CPI(A)); alcoholic drinks and tobacco (1.9% in the Composite CPI and 2.6% in the CPI(A)); miscellaneous goods (1.8% in the Composite CPI and 2.0% in the CPI(A)); food (excluding meals bought away from home) (1.7% in the Composite CPI and 1.4% in the CPI(A)) and miscellaneous services (1.6% in the Composite CPI and 1.7% in the CPI(A)).
On the other hand, year-on-year decreases in prices were recorded in October 2016 for durable goods (-4.9% in the Composite CPI and -5.0% in the CPI(A)) as well as clothing and footwear (-2.4% in the Composite CPI and -2.6% in the CPI(A)).
As for housing, the Composite CPI rose by 0.5% over a year earlier but the CPI(A) fell by 0.4%.
Taking the first ten months of 2016 together, the Composite CPI rose by 2.7% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 3.2%, 2.5% and 2.3%. Netting out the effects of all Government's one-off relief measures, the Composite CPI, CPI(A), CPI(B) and CPI(C) rose by 2.4%, 2.6%, 2.3% and 2.1% respectively in the first ten months of 2016 over a year earlier.
For the 3 months ended October 2016, the Composite CPI rose by 2.7% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 4.0%, 2.2% and 1.9% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 2.1%, 2.6%, 2.0% and 1.8% respectively.
For the 12 months ended October 2016, the Composite CPI was on average 2.6% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 3.1%, 2.5% and 2.2%. The corresponding increases after netting out the effects of all Government's one-off relief measures were 2.3%, 2.6%, 2.3% and 2.1% respectively.
Commentary
A Government spokesman said that the underlying inflation rate eased somewhat in October, with further moderation in the year-on-year increase in the private housing rental component. The headline inflation rate receded more visibly in October, mainly attributable to the rates concession in the fourth quarter of 2016, while there was no such concession same time last year.
The spokesman commented further that, looking ahead, inflation pressure should remain moderate in the near term, given muted imported inflation and tame local cost pressures. 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 October 2016 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, 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 October 2016 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.
The new 2014/15-based CPI series, as first announced by the C&SD on April 29, 2016, is compiled on the basis of the expenditure patterns obtained from the Household Expenditure Survey (HES) conducted during October 2014 to September 2015. It replaces the old 2009/10-based series for analysing consumer price changes. To assist data users, the old series will continue to be compiled and published in parallel with the new series until the reference month of December 2016. It is an established practice in Hong Kong for the HES to be conducted and for the CPI series to be rebased once every five years. Both the old and the new series of CPIs have been exhibiting a similar trend in recent months.
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, November 22, 2016
Issued at HKT 16:30
Issued at HKT 16:30
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