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Monday, June 11, 1973

AVERAGE PRICE RISE OF 6 PER CENT IN 1972

The general price level in Hong Kong rose by an estimated average

of 6.4 per cent during 1972, according to a review of the Hong Kong Consumer

Price Index.

The figure compares with rises of 3.5 per cent in 1971, 5.7 per cent

in 1970 and five per cent in 1969..

An account of the movements of the index, the influencing factors

and comparative figures are contained in a special article in the Hong Kong

Monthly Digest of Statistics,

The review points out that the General Consumer Price Index "which

had moved upward relatively slowly in 1971, showed a faster upward movement

in 1972".

It says that fluctuations in the index during the year were largely

influenced by movements in prices of foodstuffs, especially when supplies

were affected by typhoons and rainstorms during the summer.

Despite these fluctuations, the review says, the underlying trend

was upwards.

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The article reveals that the largest increase in prices of foodstuffs

was for fresh vegetables, which rose by 20 per cent over that of 1971.

Illustrating some of the fluctuations, the review says that the General

Consumer Price Index rose to 142 in June last year, from 138 the previous

month, due to the sharp increase in food prices caused by the rainstorm.

In September it rose to a new peak of 143, brought about by an

unusual drop in the supply of fresh vegetables. The "high" was again reached

in November due to a typhoon threat at the beginning of the month.

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