Census and Statistics Department (C&SD) released today the Consumer Price Index (CPI) figures for August 2014. According to the Composite CPI, overall consumer prices rose by 3.9% in August 2014 over the same month a year earlier, slightly smaller than the corresponding increase (4.0%) in July 2014. 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 August 2014 was 3.2%, also slightly smaller than that in July (3.3%), mainly due to the enlarged decreases in the charges for package tours.

Amongst the various CPI components, year-on-year increases in prices were recorded in August 2014 for electricity, gas and water (24.3% in the Composite CPI and 29.7% in the CPI(A), mainly because some households had used up the full amount of Government's one-off electricity charge subsidy); alcoholic drinks and tobacco (7.6% in the Composite CPI and 8.2% in the CPI(A), mainly due to the increase of tobacco duty); housing (4.9% in the Composite CPI and 5.6% in the CPI(A)); meals bought away from home (4.7% in the Composite CPI and 4.8% in the CPI(A)); food (excluding meals bought away from home) (3.1% in the Composite CPI and 3.0% in the CPI(A)); miscellaneous goods (2.4% in the Composite CPI and 2.6% in the CPI(A)); transport (2.2% in the Composite CPI and 2.9% in the CPI(A)) and miscellaneous services (2.1% in the Composite CPI and 2.0% in the CPI(A)).

On the other hand, year-on-year decrease in prices was recorded in August 2014 for durable goods (-3.6% in the Composite CPI and -3.8% in the CPI(A)).

As for clothing and footwear, the Composite CPI rose by 0.5% over a year earlier but the CPI(A) fell by 0.6%.

A Government spokesman said that inflationary pressures stayed on an easing trend, with the underlying Composite CPI showing a slightly slower year-on-year increase in August, reflecting the receding rental cost pressures and the modest rise in import prices.

The spokesman commented further that, looking ahead, the relatively mild imported inflation alongside the generally moderate local price pressures should help keep underlying inflation contained in the rest of the year. Nevertheless, headline inflation will likely pick up temporarily in September 2014 on a year-on-year comparison, as the Government's payment of public housing rentals in September last year created a low base of compariso

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