A sustained pick-up in inbound tourism and consumer spending has led to a recent abatement of consumer price deflation, with the composite consumer price index falling 0.1 percent in June, distinctly smaller than the 0.9 percent decrease in May.

The Census & Statistics Department said the index, having been on a continuous downtrend since November 1998, showed almost no change in June.

This was caused by an increasing proportion of local retailers and service providers modestly adjusting their prices upwards or trimming discounts. The firming up of import prices and bottoming out of private housing rentals in recent months also contributed to the narrow decline.

The smaller year-on-year decline in June was partly attributable to the lower base of comparison brought about by a rebate from an electricity company in June last year. Other

factors included a moderated fall in private housing rentals, and enlarged increases in the charges for package tours and for inbound and outbound transport.

Price increases were recorded for electricity, gas and water (12.8 percent), clothing and footwear (10.5 percent), miscellaneous goods (3.2 percent), food (2.8 percent) and transport (1.2 percent).

Taking the first six months together, the composite consumer index fell 1.3 percent from a year earlier.

Source: Xinhua