CHAPTER 6 : PRICES
General
6.1
The rate of inflation continued to ease in the first
half of 1982, following the trend that emerged in the fourth
quarter of last year. This, in part, reflected the easing of
inflation rates elsewhere in the world. Domestic influences
have also been favourable. Aggregate demand in the economy was generally not exercising much pressure on prices, property
prices and rentals generally continued to fall, the exchange
rate strengthened by 6% during the first half of 1982 in terms
of the import-weighted exchange rate index and the growth rate
of the money supply (HK$M3) declined by 3% during the same period.
6.2
G.D.P.
Although there is no up-to-date estimate of the
deflator (which provides an indication of the
the overall
rate of domestic inflation), on the basis of developments in
the economy during the first half of 1982, the forecast rate
of increase of 9% still looks attainable. On a year-on-year
comparison, the rate of inflation, as indicated by the various
Consumer Price Indexes (which provide an indication of how
inflation is affecting consumer
prices)(1), averaged about
11% in the second quarter. This compares favourably with
average rates of increase of 15% in 1981 and of 13% in the first quarter of this year.
(1)
/ Imports
...
There are three consumer price indexes: Consumer Price Indexes (A) and (B), and the Hang Seng Consumer Price Index. of the three indexes are as follows:
The characteristics
Aproximate
Proportion of urban households covered
(8)
CPI(A)
50
CPI(B)
30
Hang Seng CPI
10
Monthly expenditure
range in 1979/80
($)
1,000 to 3,499
3,500 to 6,499
6,500 to 19,999
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