rate index, strengthened by 3.8% during the first nine months

of this year. Third, the money supply (HK$M3) grew by only 1.6% during the same period. Admittedly, this figure benefits

from any structural shift from Hong

Hong Kong dollar to foreign

currency deposits that may have taken place as a result of the

exemption of foreign currency deposits from interest tax, but

it is likely that the underlying growth rate of the money

supply was markedly slower than in 1981, when the rapid growth

(21% during the year) was believed to have contributed, at

least in part, to the high rate of inflation.

Import prices

6.3

as

The year-on-year rate of increase in import prices, indicated by the unit value index of imports, decelerated to 2% in the third quarter, from 6% in the second quarter and 12% in the first quarter. The prices of all

all the five major

end-use categories of imports followed similar downward

largely due to the softening of world

(2)

trends

This

was

/ commodity

(2)

Year-on-year rates of increase in unit value indexes of imports

1982 Q1

1982 22

( 8 )

(음)

1982 23*

(8%)

Foodstuffs

12

8

4

67 00

8

4

5

-5

-5

7

45 2

Consumer goods

Fuels

Raw materials and

14

semi-manufactures

Capital goods

Total imports

22

12

16

5

9

2

Notes: (*) Estimated by using trade indexes available up to August 1982.

34

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