Consumer prices rose 0.2% in December over a year earlier, mirroring November's increase.

The Census & Statistics Department said there was a moderated year-on-year fall in private housing rentals, but rises in package tour charges and women's footwear.

There were reduced increases in the price of fresh fruit and costs for meals bought away from home. Also relevant was the dissipation of the low base effect brought about by the waiver of water and sewage charges implemented in August-November 2003.

Mild inflation continues

The department said the mild consumer price inflation is expected to continue amidst the continued strength of the economy and firming up in retained import prices caused by the earlier weakness of the US dollar.

Analysed by sub-index and on a year-on-year comparison, the CPI(A) rose 0.5% in December, slightly smaller than the corresponding increase of 0.6% in November. The rise in the CPI(B) was the same as that in November, at 0.2%, while the CPI(C) dipped 0.1%, also smaller than the corresponding 0.2% fall in November.

Amongst the various CPI components, year-on-year increases were recorded in December for clothing and footwear (4.3% in the Composite CPI and 5.2% in the CPI(A)), electricity, gas and water (4.1% in both the Composite CPI and CPI(A)), food (excluding meals bought away from home) (3.6% in both the Composite CPI and CPI(A)), miscellaneous goods (2.1% in the Composite CPI and 1.2% in the CPI(A)), miscellaneous services (1.7% in both the Composite CPI and CPI(A)), transport (0.9% in the Composite CPI and 0.7% in the CPI(A)), and meals bought away from home (0.4% in the Composite CPI and 0.6% in the CPI(A)).

Housing prices fall

Year-on-year price falls were recorded in December for housing (-3.4% in the Composite CPI and -2.9% in the CPI(A)), durable goods (-1.8% in the Composite CPI and -1.3% in the CPI(A)), and alcoholic drinks and tobacco (-0.2% in both the Composite CPI and CPI(A)).

For the quarter ended December, the average monthly rates of increase in the seasonally adjusted Composite CPI, CPI(A), CPI(B) and CPI(C) were all 0.1%, same as those for the 3-month period ended November.

In the fourth quarter of 2004, the Composite CPI rose 0.2% over a year earlier. The corresponding rates of change in the CPI(A), CPI(B) and CPI(C) were 0.5%, 0.2% and -0.1%.

For 2004 as a whole, the Composite CPI was on average 0.4% lower than the year 2003, with the CPI(A) remained unchanged, CPI(B) fell 0.5% and CPI(C) fell 0.9%.