The Composite Consumer Price Index for April 2003 fell by 1.8% from a year earlier, smaller than the 2.1% decrease in March 2003.

The smaller year-on-year decline in the Composite CPI in April was largely due to a lower base of comparison in April 2002. The waiver of water and sewage charges and an increase in the maximum amount of rates concession for 2002 from April last year was responsible.

Netting out these special factors, the year-on-year decline in the Composite CPI would have widened by about 0.2 of a percentage point between March and April 2003.

The larger decline was mainly attributable to enlarged decreases in private-housing rentals, in the prices of clothing and footwear, and in the charges for telephone and other communication services. Also relevant was a slight increase in jewellery prices. 

This was partly due to a dampening in demand - and hence on prices - brought about by the spread of severe acute respiratory syndrome since mid-March. SARS impact will continue to be reflected in future CPIs.

Durable goods registered the largest year-on-year decline in prices in April 2003 (-7.4%). This was followed by clothing and footwear (-3.8%), housing (-2.9%), miscellaneous services (-2.3%), meals bought away from home (-1.6%), food (excluding meals bought away from home) (-1.4%), and alcoholic drinks and tobacco (-0.1%).

Electricity, gas and water saw a year-on-year increase in prices in April (12.8%), mainly on account of a lower base of comparison caused by the waiver of water and sewage charges from April 2002 to March 2003. Transport costs remained unchanged.

Taking the first four months of 2003 together, the Composite CPI declined by 1.9% from a year earlier. For the three months and 12 months ended April 2003, the Composite CPI decreased by 2% and 2.8% over a year earlier, respectively.