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 From Hong Kong's Information Services Department
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May 21, 2007
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Inflation
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April CPI up 1.3%
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Composite CPI
Slight rise: Overall consumer prices in April rose 1.3% over the same month last year.

Overall consumer prices in April rose 1.3% over the same month last year, the Census & Statistics Department says.

 

The smaller year-on-year rise was mainly attributable to the Budget measure of rates concession for the first two quarters of the 2007-08 fiscal year. Netting out this factor, year-on-year growth was 2.4%, the same figure as March. The concession will continue impact the CPI until September.

 

Year-on-year price rises were recorded in April for food (excluding meals bought away from home) (up 4.3%), clothing and footwear (4.1%), miscellaneous services (2.4%), miscellaneous goods (2.2%), meals bought away from home (2.1%), alcohol and tobacco (1.2%) and housing (0.9%). 

 

Year-on-year price falls were recorded for durable goods (-4.9%), electricity, gas and water (-3.1%) and transport (-0.9%).

 

The Census & Statistics Department said the higher charges for package tours in April were effectively offset by the moderating rise in food prices and the decline in Towngas charges.

 

It foresees that sustained rapid growth in labour productivity is likely to cushion overall inflationary pressures. On top of this, the rates waiver and other one-off measures will keep the headline inflation down in the coming months.