According to the 2004/05-based Composite Consumer Price Index series, overall consumer prices rose 1.9% in April over a year earlier, following a 1.6% rise in March.

The Census & Statistics Department said the larger year-on-year rise was mainly attributable to the increases in the prices of fresh vegetables and charges for package tours.

Year-on-year increases in prices were recorded for housing (4.9%), electricity, gas and water (4.1%), miscellaneous services (1.8%), food (excluding meals bought away from home) (1.7%), transport (1.4%), miscellaneous goods (1.1%) and meals bought away from home (1.0%).

Year-on-year price falls were recorded for alcoholic drinks and tobacco (-6.7%), durable goods (-6.3%) and clothing and footwear (-2%).

Consumer price inflation edged up but remained moderate in April, the department said.

The rise in private housing rentals continued to feed through to consumer price indices to a greater extent. Yet prices of many other goods and services showed only mild increases or even declines, suggesting that local inflationary pressure is still well contained.

Prices likely to creep up as economy rebounds

Looking ahead, consumer price inflation is likely to creep up along with the economic upturn. The recent renewed weakening of the US dollar may also increase price pressure from the external front in the period ahead.

Yet rapid labour productivity growth and the continuous expansion in production capacity should continue to provide an offset.

The new 2004/05-based CPI series is compiled on the basis of the spending patterns obtained from the Household Expenditure Survey conducted from October 2004 to September 2005. It replaces the old 1999/2000-based series for analysing consumer price inflation.