Consumer price inflation remains moderate in March

24 Apr '07

3 min read

Amongst the various CPI components, year-on-year increases in prices were recorded in March 2007 for food (excluding meals bought away from home) (5.2% in the Composite CPI and 5.6% in the CPI(A)), housing (4.5% in the Composite CPI and 3.9% in the CPI(A)), clothing and footwear (4.4% in the Composite CPI and 2.0% in the CPI(A)), miscellaneous goods (2.4% in the Composite CPI and 2.6% in the CPI(A)), miscellaneous services (2.2% in the Composite CPI and 1.2% in the CPI(A)) and meals bought away from home (2.0% in the Composite CPI and 1.5% in the CPI(A)).

A Government spokesman pointed out that consumer price inflation remained moderate in March. The distinctly faster year-on-year increase in the Composite CPI in March than in February was mainly due to the waiver of public housing rentals for February. Netting out the effect of the waiver, the rate of consumer price inflation in March was actually similar to that in the preceding two months combined.

The spokesman added that increasing price pressures from the external front are expected, given the recent weakening of the US dollar. Nevertheless, overall inflationary pressures should be cushioned to some extent by the continued distinct growth in labour productivity.

Census & Statistics Department

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