UNCLASSIFIED
2
Nonetheless the problem of excess demand persists. The
labour market is still tight despite the arrival of some 200,000
Chinese immigrants in the past 18 months. Wage rates are up by
20% on last year's levels and this has contributed to rising
inflation.
Consumer prices increased at an annual rate of about
% in the first half of 1979 (1978: 7%) while in the construction
industry costs have increased over the same period at an annual
rate of between 30 and 40% (1978: 20%).
Hong Kong and General Department
September 1979
+
I