The Composite Consumer Price Index rose by 0.8% in March from a year earlier, the same as the increase in February, according to figures released by the Census & Statistics Department today.

Comparing March with February 2005, there was an enlarged year-on-year increase in electricity charges. This was mainly attributable to a special one-off rebate a power company provided in March 2004.

The year-on-year decline in private housing rentals continued to moderate.

The charges for package tours, prices of poultry and costs for meals bought away from home fell after the Lunar New Year Festival.

Analysed by sub-index and on a year-on-year comparison, the CPI(A) and CPI(B) rose by 1.1% and 0.8% in March, also the same as the increases in February. The CPI(C) rose by 0.3% in March, slightly smaller than the corresponding increase of 0.5% in February.

Among the various CPI components, year-on-year increases in prices were registered in March for electricity, gas and water (6.9% in the Composite CPI), food - excluding meals bought away from home (4.3%), miscellaneous goods (2.5%), clothing and footwear (2.3%), miscellaneous services (2.2%), transport (1.1%) and meals bought away from home (0.6%).

Housing, durable goods, alcohol prices slip

Year-on-year declines in prices were recorded in March for housing (-2.2% in the Composite CPI), durable goods (-2%), and alcoholic drinks and tobacco (-0.1%).

The Census & Statistics Department said the Composite CPI recorded a 0.8% increase in March, suggesting that inflationary pressure remained benign. 

Consumer prices are expected to edge up gradually in the months ahead, as consumption demand strengthens and as higher retained import prices gradually feed through to the retail level, it added.