Wednesday, May 9, 1973
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FOOD PRICES PUSH UP COST OF LIVING
The cost of living in Hong Kong rose more rapidly during the
past financial year but generally was on par with the 1970/71 increase of
7.3 per cent, the Acting Financial Secretary, the Hon. D.J.C. Jones, told the
Legislative Council today.
After allowing for seasonal fluctuations, he said, an increase of
some 7.9 per cent was shown for 1972/73 over the previous twelve months when
an increase of just over three per cent was recorded.
Using the same basis of ironing out seasonal fluctuations; the increase for the first three months this year was about 2.8 per cent.
This figure compared with an increase of about 7 per cent as
measured by the General Consumer Price Index which rose by 11 points between
January and March.
Mr. Jones stressed, however, that the figure given by the index was
"very misleading.
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"As it stands it conveys undertones of a highly inflationary situation."
But the reality, he added, "is considerably less frightening."
Mr. Jones emphasised that he was not attempting to "paint a rosy picture," but he pointed out that the figures given by the index should not
be taken at face value as the index was heavily influenced by the price of
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food which in turn was affected by seasonal variations in demand.
"This is important, because it means that it can be very misleading
to read too much into the rise or fall of the index in a particular month or
even a particular quarter."
In attempting