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Consumer price indices for August
Consumer price inflation moderated significantly further in August, according to the Consumer Price Index (CPI) figures for August 1996 released by the Census and Statistics Department today (Monday).
CPI(A) showed a year-on-year increase of only 4.9% in August 1996, substantially below the increase of 6.1% in July. This was the lowest inflation rate recorded since July 1987.
Moderation was also recorded in CPI(B) and Hang Seng CPI. In August, CPI(B) rose by 5.5%, compared with 6.4% in July, while Hang Seng CPI increased by 5.8%, compared with 6.1% recorded in July.
Composite CPI, which is compiled based on the combined expenditure pattern of all households, also showed a less rapid year-on-year rate of increase of 5.4% in August 1996, against 6.2% in July.
A government spokesman said the moderation in inflation could be attributed mainly to slower price increases in the food component, with a price decline for fresh vegetables and a more modest price rise for meals bought away from home. In addition, slower increases in private housing rentals also contributed.
Analysed by component, faster year-on-year increase than the overall average in August was recorded for housing (8.5% in CPI(A) and 9.2% in Composite CPI).
Meanwhile, those components with slower year-on-year increases in prices than the overall average were food (excluding meals bought away from home) (-1.3% in CPI(A) and -0.7% in Composite CPI); durable goods (1.3% in both CPI(A) and Composite CPI); meals bought away from home (3.8% in CPI(A) and 3.5% in Composite CPI) and miscellaneous goods (3.9% in CPI(A) and 3.2% in Composite CPI).
Comparing August 1996 with July 1996, CPI(A) and CPI(B) both increased by 0.1%. The corresponding increases for Hang Seng CPI and Composite CPI were 0.3% and 0.2% respectively.
Taking the first eight months of 1996 together, the increases in CPI(A) and CPI(B) averaged at 6.1% and 6.6% over a year earlier. The corresponding increases in the Hang Seng CPI and Composite CPI were 6.9% and 6.5% respectively.