THE ECONOMY
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sectors as a whole rose by 14 per cent in money terms, or by four per cent in real terms over the same period. Of the various service sectors, earnings in the wholesale, retail and import/export trades; finance, insurance, real estate and business services; and transport, storage and communication all rose by about 12 per cent in money terms. After adjusting for inflation, the increase in real earnings in these three sectors were two per cent, two per cent and one per cent respectively. Earnings in restaurants and hotels rose by only nine per cent in money terms, which was equivalent to a decrease of one per cent in real terms.
The Property Market
The residential property market underwent some consolidation in 1992. The anti-specula- tion measures introduced by the government in late 1991 and the tight mortgage lending policy pursued by the banks continued to have their restraining effect. Transactions were considerably less in 1992 than in 1991. The prices of residential flats, after showing a further increase during the first half of the year eased somewhat during the second half, amid more sluggish trading. But the rentals on new lettings of residential flats remained stable, with some increases recorded in more favoured areas. In the market for shopping space, demand was supported by the pick-up in consumer spending and the growth in tourism. Prices and rentals rose further. The demand for office space revived along with a modest gain in rentals in most districts, while supply remained abundant. The sales market - for office strata was active as buyers' interest continued to shift from residential flats to office premises. The market for older conventional factory space remained sluggish. However, well-located modern industrial buildings designed also for ancillary office uses were more favoured. As to land sales, response to the auctions of residential sites during 1992 remained generally favourable. However developers were cautious about acquiring industrial sites.
Inflation
The rate of inflation at the consumer level, as measured by the Consumer Price Index (A), rose by an average of 9.4 per cent in 1992. This compared with the corresponding increase of 12 per cent in 1991. Continuing the moderating trend since April 1991, the rate of inflation eased further in the first eight months of 1992, to 8.3 per cent in August. It rebounded to 9.9 per cent in September, partly due to the volatile movements in the prices of certain essential foodstuffs. In December, the rate of inflation stood at 9.4 per cent.
Among the various components of the CPI(A), the cost of housing recorded the fastest increase, by an average of 13 per cent in 1992 over 1991. This was followed by charges for services (12 per cent), alcoholic drinks and tobacco (10 per cent), food (nine per cent) and clothing and footwear (eight per cent). Taken together, these five components accounted for 87 per cent of the overall increase in the CPI(A). On the other hand, relatively more moderate increases were recorded in the prices of transport, miscellaneous goods, fuel and light and durable goods by an average of seven per cent, seven per cent, five per cent and two per cent respectively in 1992 over 1991. As faster price increases were generally recorded for items with a larger local input content, which was to be expected when the local resource situation was tight, it showed that inflation in 1992 was mostly generated domestically rather than imported.