Composite CPI rise by 5.3%

22 May '08

4 min read

The corresponding rates of increase for the 3-month period from January to March 2008 were 0.4%, 0.4%, 0.4% and 0.3%. However, it should be noted that these rates of change were affected by the rates concession implemented only in some months (implemented in January to April 2008 but not in December 2007).

Netting out the effect of the rates concession, the corresponding average monthly rates of increase in the Composite CPI, CPI(A), CPI(B) and CPI(C) for the 3-month period from February to April 2008 were 0.6%, 0.7%, 0.6% and 0.6% respectively and for the 3-month period from January to March 2008 were 0.7%, 0.8%, 0.7% and 0.6% respectively.

Year-on-year increases in prices were recorded for miscellaneous goods (5.2% in the Composite CPI and 5.8% in the CPI(A)); clothing and footwear (1.4% in the Composite CPI and 2.9% in the CPI(A)).

On the other hand, year-on-year decline in prices was recorded in April 2008 for durable goods (-3.1% in the Composite CPI and -3.7% in the CPI(A)).

As for miscellaneous services, the Composite CPI rose by 0.6% over a year earlier but the CPI(A) fell by 0.5%. Also affected by the difference in expenditure patterns, implementation of the Pre-primary Education Voucher Scheme had smaller impact on the Composite CPI than on CPI(A), thus leading to different movements in the two CPIs.

Taking the first four months of 2008 together, the Composite CPI rose by 4.8% over a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 5.4%, 4.6% and 4.3%. Netting out the effect of various one-off measures, the Composite CPI, CPI(A), CPI(B), and CPI(C) rose by 5.0%, 5.0%, 5.2% and 4.9% respectively in the first four months of 2008 over a year earlier.

For the 3 months ended April 2008, the Composite CPI rose by 5.3% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 6.3%, 5.1% and 4.5% respectively. The corresponding increases after netting out the effect of various one-off measures were 5.2%, 5.3%, 5.4% and 5.1% respectively.

For the 12 months ended April 2008, the Composite CPI was on average 3.1% higher than in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.9%, 3.1% and 3.2%. The corresponding increases after netting out the effect of various one-off measures were 3.6%, 3.4%, 3.7% and 3.8% respectively.

Commentary:
A Government spokesman said that the headline Composite CPI inflation of 5.4% in April was the same as the underlying rate because the effect of the rates concession was offset by a similar relief measure in April last year. This was marginally higher than the underlying inflation rate of 5.3% in March.

Census and Statistics Department

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