On the other hand, year-on-year declines in prices were recorded in October 2007 for durable goods (-4.4% in the Composite CPI and -4.6% in the CPI(A)).
Commentary:
A Government spokesman pointed out that the dissipation of the favourable effect of the rates concession in October and the pick-up in underlying consumer price inflation from 2.7% in September to 3.2% in October had been fully factored into account in the 2% inflation forecast for 2007 as a whole as announced by the Government on November 16.
The spokesman added that with the overall economic situation staying robust for four years, inflation had been on a slowly rising trend. There had been additional pressures from higher food prices and oil prices, the weakening of the US dollar and the appreciation of renminbi.
These developments as well as the recent pick-up in flat rentals would continue to pose upside risks to inflation. Nevertheless, the sustained growth in labour productivity should still provide an alleviating effect.
Census and Statistics Department
marketing@alchempro.com
