CHAPTER 6: PRICES
Inflation
6.1
Indexes
The rate of inflation slowed down further in the
third quarter. For example, the year-on-year rate of increase
in consumer prices, as indicated by the various Consumer Price
(1)
averaged about 10% in the third quarter. When
compared with equivalent increases of 11% in the second
quarter and 13% in the first quarter of this year, and of 15%
in 1931, this represents a significant improvement.
3.2
Apart from the easing of inflation rates elsewhere in
the world, a number of factors have contributed to the slowing
down in the rate of inflation in Hong Kong. First, aggregate demand for resources in the economy was not imposing as strong
pressure
aggregate supply and hence the general price
level as previously. Property prices and rentals either
or stabilized. Second, the exchange value of the
declined
on
on
Hong Kong dollar, in terms of the import-weighted exchange
/ rate
(1) There are three consumer price indexes: Consumer Price Indexes (A)
and (B), and the Hang Seng Consumer Price Index.
of the three indexes are as follows:
Approximate proportion of urban households covered
The characteristics
Monthly expenditure
range in 1979/80
( % )
($)
CPI(A)
50
1,000 to
3,499
CPI(B)
30
3,500 to 6,499
Hang Seng CPI
10
6,500 to 19,999
33