Consumer prices rose 0.2% in October over a year earlier, further to a 0.7% rise in September.

The Census & Statistics Department said the smaller year-on-year rise in the Composite Consumer Price Index was mainly attributable to dissipation of the low-base effect of the rates concession in the third quarter of last year, and the moderated increases in the prices of poultry and charges for package tours.

Analysed by sub-index and on a year-on-year comparison, the CPI(A) and CPI(B) rose 0.4% and 0.1% in October, down on the corresponding increases of 1.3% and 0.6% in September. But the CPI(C) fell 0.1%, as against the 0.3% rise in September, due to the year-on-year decline in the private housing rentals.

Amongst the various CPI components, year-on-year increases were recorded in October for electricity, gas and water (12.8% in the Composite CPI and 14.1% in the CPI(A)), clothing and footwear (5.1% in the Composite CPI and 5% in the CPI(A)), food (excluding meals bought away from home) (3.3% in the Composite CPI and 3.2% in the CPI(A)), miscellaneous goods (3.1% in the Composite CPI and 1.8% in the CPI(A)), miscellaneous services (1% in the Composite CPI and 0.9% in the CPI(A)), and meals bought away from home (0.6% in the Composite CPI and 0.7% in the CPI(A)).

Housing prices fall

Year-on-year price falls were recorded in October for housing (-4.3% in the Composite CPI and -3.7% in the CPI(A)), durable goods (-2.2% in the Composite CPI and -1.8% in the CPI(A)), and alcoholic drinks and tobacco (-0.2% in the Composite CPI and -0.3% in the CPI(A)).

Transport costs rose 0.6% in the Composite CPI but remained unchanged in the CPI(A).

Noting overall prices remained modestly higher on a year-on-year comparison, for the fourth consecutive month in October, the Government said the rise was due to price increases of many commodity items such as food, outerclothing and jewellery, alongside the sustained economic growth and pick-up in import prices which has outweighed the downward pressure for the housing component.

It said as domestic demand strengthens and as the uptrend in world commodity prices and higher inflation in the major supplier economies including the Mainland filter through, mild consumer price inflation can be expected to continue.