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in

the CPI (A)

(24).

However, if China's inflation stays

at a high level while the Renminbi exchange rate is kept

stable, the effect on Hong Kong's import prices and hence consumer prices could become more apparent in the coming

months.

38.

A more

economic growth

and well-being.

door policy and

sustainable, albeit relatively less rapid,

in China is beneficial to its development

So long as China continues with its open.

its economic reform and modernisation

the longer term prospects for China's economy,

well as for the Hong Kong economy given their very close

economic links, should remain bright.

programmes,

as

(24) Year-on-year rates of increase (%) in:

Retail price index

of goods

imported from China

CPI (A)

All consumer

goods

All

Foodstuffs

consumer

goods

Foodstuffs

1992 Annual

6.0

6.9

9.4

8.8

Q1

8.5

10.5

10.1

11.1

Q2

7.5

8.9

9.0

9.5

Q3

4.5

4.9

9.0

7.6

Q4

3.8

3.6

9.4

7.2

1993 H1

4. 1

4.5

8.5

6.8

Q1

3.9

4.6

8.8

6.8

Q2

4.2

4.3

8.2

6.7

Economic Analysis Division Financial Services Branch Government Secretariat 20 September 1993

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