Inflation plumbs new low

The city’s monthly inflation rate stood at 3.31 per cent in March 2016. The consumer price index (CPI) has risen to 108 from 104.54 since March 2016, according to data released yesterday by the Statistics and Science Service (DSEC). This growth in CPI was attributed by the DSEC to higher rentals for dwellings and parking spaces, dearer charges for eating out, as well as rising prices of tobacco, motor cars and vegetables.
In comparison with March 2015, increases in tobacco tax, tuition fees, rentals for parking spaces and prices of motor cars drove up the price index of Alcoholic Beverages & Tobacco, Education and Transport by 37.36 per cent, 8.97 per cent and 7.70 per cent, respectively.
Meanwhile, Clothing & Footwear and Communication decreased by 2.88 per cent and 1.20 per cent. Nevertheless, CPI has decreased 0.36 per cent month-to-month.
Annualised rate at 4.21 pct
On a monthly comparison, the price index of Recreation & Culture and Clothing & Footwear fell by 7.97 per cent and 1.96 per cent due to lower charges for package tours after the Lunar New Year and seasonal sale of winter clothing. Meanwhile, the receding prices of vegetables, fruits, fresh fish and seafood pushed down the price index of Food & Non-Alcoholic Beverages by 0.33 per cent.
For the 12 months ended March 2016, the average Composite CPI increased by 4.21 per cent from the previous period. The price index of Alcoholic Beverages & Tobacco, Education and Housing & Fuels showed a marked increase, with 26.85 per cent, 6.43 per cent and 6.09 per cent, respectively.
The average Composite CPI for the first quarter of 2016 (107.91) increased by 3.67 per cent year-on-year, with the price index of Alcoholic Beverages & Tobacco, Education and Transport rising 38.56 per cent, 8.93 per cent and 6.72 per cent, respectively.