Back in demand: Overall consumer prices grew 0.9% in July, showing revived consumer demand.

Prolonged deflation over the past five years has ended, with overall consumer prices reverting to a mild 0.9% rise in July after a 68-month continuous downtrend since November 1998.

The Census & Statistics Department said the rise was mainly attributable to a lower base of comparison brought about by the Government's rates concession in last year's third quarter.

Other contributory factors include the renewed rise in fresh vegetable prices, and enlarged growth in package tour charges and jewellery prices.

CPI(A) rose 1.5% in July, while CPI(B) and CPI(C) went up 0.8% and 0.4%.

Increases show an improved economy

The department said the rise also reflected the combined influence of improved economic conditions, revived consumer demand and rising import prices in recent months.

Price rises were recorded for electricity, gas and water (13.5%), clothing and footwear (7.5%), miscellaneous goods (4%), food (3.1%), miscellaneous services (1.7%), transport (1.1%), and meals bought away from home (0.5%).

Housing continued to register the largest year-on-year fall in prices (-2.8%).  This was followed by durable goods (-1.8%), and alcohol and tobacco (-0.1%).

Taking this year's first seven months together, overall consumer prices fell 1% on a year earlier. CPI(A), CPI(B) and CPI(C) fell by 0.6%, 1.1% and 1.5%.

For the quarter ending July, overall consumer prices fell by 0.1% from a year earlier, while CPI(A) rose 0.3%, CPI(B) and CPI(C) fell 0.1% and 0.4%.

For the 12 months ending July, overall consumer prices were on average 1.8% lower than in the preceding 12-month period. The falls in CPI(A), CPI(B) and CPI(C) were 1.3%, 1.9% and 2.2%.