Overall consumer prices rose 0.8% in August over a year earlier, further to a 0.9% increase in July.

The Census & Statistics Department said the smaller year-on-year increase in the Composite CPI was mainly attributable to moderated increases in the charges for package tours, in inbound and outbound transport fares, and in the price of fresh vegetables and poultry.

Analysed by sub-index and on a year-on-year comparison, the CPI(A), CPI(B) and CPI(C) rose 1.4%, 0.7% and 0.1% in August, down on the corresponding increases of 1.5%, 0.8% and 0.4% in July.

Amongst the various CPI components, year-on-year increases were recorded in August for electricity, gas and water (12.2% in the Composite CPI and 13.4% in the CPI(A)), clothing and footwear (7% in the Composite CPI and 6.8% in the CPI(A)), miscellaneous goods (4% in the Composite CPI and 2.3% in the CPI(A)), food (excluding meals bought away from home) (2.8% in the Composite CPI and 3.1% in the CPI(A)), miscellaneous services (1.1% in the Composite CPI and 0.7% in the CPI(A)), and meals bought away from home (0.4% in the Composite CPI and 0.7% in the CPI(A)).

Housing prices fall

Year-on-year price falls were recorded in August for housing (-2.3% in the Composite CPI and -0.4% in the CPI(A)), durable goods (-1.8% in the Composite CPI and -1.3% in the CPI(A)), and alcohol and tobacco (-0.1% in the Composite CPI and -0.2% in the CPI(A)).

Transport costs rose 0.6% in the Composite CPI but remained unchanged in the CPI(A).

Noting that overall consumer prices remained slightly higher on a year-on-year comparison, for the second consecutive month in August, the Government said the increase was largely due to the low base of comparison brought about by the rates concession in the third quarter of 2003 and the waiver of water and sewage charges for the August-November quarter.

It said the price of many consumer goods and services continued to rise, albeit by a smaller magnitude in August than in July, under the combined influence of a sustained pick-up in consumer spending and firmer import prices.