(3).

FC040/1616

in

consumer

first half (paragraph 3.4). Third, the rate of increase

world commodity prices was moderate. Fourth, the rate of

inflation in Hong Kong's major trading partners continued

slow down

Thus, had the Hong Kong dollar not

depreciated in the last few months of 1982 and in the first

(4), half of this year

the rate of increase in

prices could well have shown a significant slowing down this year, compared with the average rate of increase of about 11%

in 1982. On present indications, however, the depreciation of

the Hong Kong dollar during the first half of 1983 may result

in a rather faster rate of consumer price increase in the second half of the year.

(3)

/Import

Seasonally adjusted annual rate of price increase in Hong Kong's major trading partners in 1982 and 1983:

CPI/Private consumption

expenditure deflator

t

:

1981

1982

1983 (forecast)

(8)

(*)

(*)

United States

10.4

6.1

3.0

!

FR Germany

5.9

5.3

3.0

United Kingdom

11.9

8.6

5.1

Japan

4.9

2.7

2.0

OECD

10.6

7.8

5.2

Source: National Institute of Economic and Social Research, May 1983.

(4) For instance, the import-weighted exchange rate index for the Hong Kong dollar (19.12.71-100, 1981 weights) fell from 84.9 at the end of September 1982 to 76.2 at the end of March 1983, and further to 71.7 the end of June 1983, reflecting a depreciation of 16% since September 1982.

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