Clothing & footwear prices rise in Dec

22 Jan '08

3 min read

In the fourth quarter of 2007, the Composite CPI rose by 3.5% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 3.1%, 3.6% and 3.7% respectively. For 2007 as a whole, the Composite CPI was on average 2.0% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.3%, 2.2% and 2.7%.

Commentary:
A Government spokesman pointed out that consumer price inflation went up further in December 2007, mainly due to higher food prices particularly the surge in the prices of pork. The pick-up in the charges for package tours around the Christmas holiday, partly attributable to the weakening of the Hong Kong dollar, was another factor. For 2007 as a whole, headline consumer price inflation averaged at 2%, the same as the earlier forecast by the Government.

The spokesman further pointed out that the gradual climbing up of inflationary pressures over the course of last year should be viewed in conjunction with the sustained robust expansion of the local economy and the strength of consumer spending, as well as the similar inflation situations currently being experienced in many parts of the world.

He added that looking ahead, the global food inflation, elevated oil prices, weakening of the US dollar and appreciation of renminbi would continue to pose upside risks to inflation. The recent upward trend in private housing rentals also deserved monitoring. Yet the sustained labour productivity growth should still provide some cushioning effect to the upward price pressures.

Census and Statistics Department

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