Compilation of cost of living index in this colony is complicated by marked differences in living standards of officials and unofficials and different diets of
Europeans and Chinese. Investigations recently completed by the Statistics Officershow that standard of living of all Europeans has fallen far below that prevailing in 1938, while that of officials, which even in 1938 compared unfavourably with that of unofficials, has become still further depressed. Striking features of specimen budget compiled in the course of the investigation are substitution of inferior foodstuffs and inability to save or provide for contingencies. It is estimated that
It is estimated that, excluding rent, cost of living for Europeans in May 1947 is approximately 300 (1938 equals 100) representing greatly reduced standard, and cost of maintaining 1938 standard would be much higher. Statistics Officer reports that cost of feeding adults in Hong Kong on reasonably adequate quantities of U.K. rationed foodstuffs is approximately 5 times as much as that of feeding adults in U.K. on rationed quantities of these foodstuffs. Relative cost of clothing is higher but this item does not figure prominently in the domestic budget of many officers, who are avoiding purchase of even necessary clothing and in some cases depend on what they received from the Red Cross during or shortly after release from internment. Exact figures for May 1946 are not available but above indicates that figure of 170 given in
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Sir Mark Young's telegram No. 47 of 8th May 1946 was seriously underestimated.
(1) on '46 file.
5. Figures independently compiled by Salary Commission from oral evidence indicate cost of living for lower grades of white-collar workers has risen more than threefold and that for the higher grades the percentage increase is lower only because of acceptance of "a very much lowered standard of living which indeed is general in all classes among manual labourere". The Commission observes that increase is at least as high among people living in Chinese style as among those living in European style. The impression gained by the
/Commission