Even in respect of foodstuffs, China's share in Hong retained imports has declined to only 26.9% in
in the ten months of 1988, from 35.1% in 1986 and 30.4% in Further, probably because of keen competition from other sources, the prices of foodstuffs from China have increased only slight ly faster than those of foodstuffs from other sources (both local and overseas).
1988
Price index of foodstuffs in :
Consumer price
index for Chinese goods
Year-on-year
rate of increase
(%)
Index (Oct 1984 Sep 1985
CPI (A)
Year-on-year
rate of increase
(%)
Index (Oct 1984 Sep 1985
100)
=
100)
Q1
104.0
7.6
111.4
8.3
Q2
106.2
8.6
114.6
8.8
Q3
112.2
13.9
119.3
11.2
Q1-3
107.5
10.1
115.1
9.4
Jul
110.4
17.5
117.3
11.1
Aug
113.1
12.6
119.4
10.6
Sep
113.1
12.0
121.1
12.0
Oct
110.4
9.5
119.9
10.3
Nov
111.1
12.0
120.4
11.3
Jan Nov
(average)
108.1
10.2
116.0
9.7
17
The risk, therefore, that Hong Kong will import some inflation from China appears not to be as great as some people have suggested. Unless inflation in China causes widespread
economic activity in China
social unrest or drastically, Hong
Kong's
down slows trade with China is likely to
CONFIDENTIAL