Hong Kong Consumer Prices Rise 1.2% in March

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April 23, 2009 - Hong Kong’s overall consumer prices rose by 1.2% in March 2009, compared to the same month a year earlier, according to the Consumer Price Index (CPI) figures released today by the Census and Statistics Department of the Hong Kong Special Administrative Region Government.

On a seasonally adjusted basis, the average monthly rate of change in the Composite CPI for the 3-month period from January to March 2009 was virtually nil.

The year-on-year rates of change in the CPIs in March 2009 were affected by various Government’s one-off relief measures, in particular the implementation of electricity charge subsidy.

Netting out the effects of all Government’s one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in March 2009 was 2.6%, smaller than the average rate of increase in January and February (3.3%). The smaller increase was due mainly to the decreases in private housing rentals and food prices.

On a seasonally adjusted basis, the average monthly rate of change in the underlying Composite CPI for the 3-month period from January to March 2009 was virtually nil, and the corresponding rate of change for the 3-month period from December 2008 to February 2009 was -0.2%.

A Government spokesman says that consumer price inflation came down further in March, reflecting the recent easing of private housing rentals and food prices as well as the weaker demand conditions.

The spokesman points out further that inflationary pressures are likely to recede further looking ahead, in the face of the global economic downturn.