Consumer prices fell 1.5% in April compared with the same month last year, narrowing further on March's 2.1% drop.

The smaller year-on-year decline in the Consumer Price Index in April was mainly attributable to a renewed increase in package tour charges, and enlarged increases in the prices of jewellery and basic foodstuffs.

Also contributing were moderated falls in private housing rent and in charges for telephone and other communications services.

The Government said notwithstanding a one-off rebate of electricity charges by a power company that month, the year-on-year decline in consumer prices narrowed again to 1.5% in April.

It said the moderation in price decline was attributable in part to the low base of comparison a year earlier, when the prices of such commodity items as consumer durables, package tours, and clothing and footwear were slashed markedly upon the impact of SARS. 

Also partly contributing was an upsurge live chicken prices, consequential to the shortage in supply.

It added that the fall in the consumer prices, whilst of the same magnitude as that in January, represented the smallest decrease since December 2002.

Falls smaller than in March

Analysed by sub-index and on a year-on-year comparison, the CPI(A), CPI(B) and CPI(C) fell by 1.5%, 1.5% and 1.6% respectively, again smaller than the corresponding declines of 1.8%, 2.1% and 2.5% in March.

For the three-month period ending April, the average monthly rates of change in the seasonally adjusted Composite CPI, CPI(B) and CPI(C) were all -0.1%, as against nil change, nil change and -0.1% respectively for the three-month period ending March.

Meanwhile, the seasonally adjusted CPI(A) showed virtually no change in both periods.

Amongst the various CPI components, housing continued to register the largest year-on-year decline in prices in April (-7.1% in the Composite CPI and -6.2% in the CPI(A)). 

This was followed by electricity, gas and water (-4.2% in the Composite CPI and -4.6% in the CPI(A)), durable goods (-1.6% in the Composite CPI and -1.1% in the CPI(A)), miscellaneous services (-1.4% in the Composite CPI and -2.1% in the CPI(A)), and transport (-0.2% in the Composite CPI and -0.6% in the CPI(A)).

Composit CPI down 1.7% in 1st 4 months

Year-on-year increases in prices were recorded for clothing and footwear (6.9% in the Composite CPI and 5.7% in the CPI(A)), miscellaneous goods (6.6% in the Composite CPI and 3.9% in the CPI(A)), food (excluding meals bought away from home) (2.1% in the Composite CPI and 2.0% in the CPI(A)), and alcohol and tobacco (0.2% in the Composite CPI and 0.4% in the CPI(A)).

As to meals bought away from home, the costs remained unchanged in the Composite CPI but rose by 0.4% in the CPI(A).

Taking the first four months of 2004 together, the Composite CPI fell 1.7% from a year earlier. 

Concurrently, the CPI(A), CPI(B) and CPI(C) fell by 1.3%, 1.8% and 2.3% respectively.

For the three months ending April, the Composite CPI fell 1.9% from a year earlier, while the CPI(A), CPI(B) and CPI(C) fell by 1.5%, 1.9% and 2.3% respectively.