Inflation climbs 1.2% in February due to price hikes over CNY

[Photo; Renato Marques]

Macau’s inflation rate increased 1.16% year over year in February, according to the Statistics and Census Service (DSEC).

DSEC said the increase is mostly due to price rises recorded during and after the Chinese New Year (CNY) period. Many companies and services take advantage of the new year to update their price lists for various goods and services.

According to DSEC, the Consumer Price Index (CPI)-A and CPI-B have grown at different paces, with CPI-A rising 1.03% and CPI-B climbing 1.26% year over year.

DSEC noted that CPI-A covers about 50% of households and is based on families with an average monthly expenditure of MOP11,000–MOP35,999, while CPI-B accounts for roughly another 30% of households, with higher expenditures (MOP36,000–MOP71,999). The Composite CPI (general rate) combines both groups.

The release noted that the Composite CPI for Housing & Fuels, Food & Non-Alcoholic Beverages, and Transport make up relatively large shares of household expenditure, with respective weights of 34.47, 29.47, and 8.33.

For the first two months of this year, the average Composite CPI grew 0.85% year over year, with the average CPI-A and CPI-B rising 0.80% and 0.88%, respectively.

DSEC also noted that in February, the price index for Recreation, Sport & Culture (+7.76%) recorded notable year-over-year growth, driven by increases in hotel room rates and package tour charges during the CNY period.

The price index for Food & Non-Alcoholic Beverages rose 0.92% due to higher charges for eating out and takeaway, while the price index for Housing & Fuels grew 0.37% due to higher rents. In addition, the price indices for Miscellaneous Goods & Services (such as personal care products, insurance, jewelry, clocks and watches) and Transport rose 3.04% and 2.36%, respectively.

Compared with January, the Composite CPI rose 0.42% in February. The price index for Recreation, Sport & Culture (+6.05%) increased significantly month over month.

Price indices for Transport (+1.63%), Miscellaneous Goods & Services (+0.63%), and Food & Non-Alcoholic Beverages (+0.22%) grew month over month, while the indices for Alcoholic Beverages & Tobacco (-0.96%) and Clothing & Footwear (-0.58%) declined.

The CPI-A and CPI-B rose 0.34% and 0.49% month over month, respectively.