The Composite Consumer Price Index for June fell 3.1% from a year earlier.

The Census & Statistics Department noted the fall was larger than the 2.5% drop in May. It attributed this in part to a fall in electricity charges, caused by a one-off rebate by a power company. It also pointed to the drop in private housing rentals, mobile phone charges, inbound and outbound transport fares, and charges for package tours.

Although SARS has recently come under control, consumer demand is still weak. Local retailers are still offering large discounts on goods and services, especially for tourism and related services.

Durable goods registered the largest year-on-year decline in prices in June (-7.9%).

This was followed by clothing and footwear (-7.5%) miscellaneous services (-4.7%) housing (-4.0%), meals bought away from home (-1.7%), transport (-1.2%), food (excluding meals bought away from home) (-1.1%), and electricity, gas and water (-0.7%).

On the other hand, year-on-year increases in prices in June were recorded for alcoholic drinks and tobacco (0.8%), and miscellaneous goods (0.5%).

For the first half, the Composite CPI fell 2.2% from a year earlier. In the second quarter, it dropped 2.5% from a year earlier.

For the year ending June, the Composite CPI was on average 2.7% lower than in the preceding 12 months.