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FRIDAY, AUGUST 24, 1990
PER
THE YEAR-ON-YEAR RATE OF INCREASE IN THE CONSUMER PRICE INDEX (A) EASED MARGINALLY TO 9.4 PER CENT IN THE FIRST QUARTER AND 9.3 CENT IN THE SECOND QUARTER, FROM 10.4 PER CENT, 10.1 PER CENT AND PER CENT RESPECTIVELY IN THE SECOND, THIRD AND FOURTH QUARTERS 1989.
9.9
OF
"THERE WERE A NUMBER OF FACTORS WHICH SHOULD DAMPEN INFLATION, MR TANG NOTED.
F
"THESE INCLUDE MODEST GROWTH IN THE LOCAL ECONOMY, LESS RAPID INCREASES IN WAGES AND SALARIES, STABLE WORLD COMMODITY PRICES DURING THE FIRST HALF OF THE YEAR, AND A RELATIVELY MODERATE INCREASE IN THE RETAIL PRICES OF GOODS FROM CHINA.
FR
"HOWEVER, THE OIL PRICE HIKE ARISING FROM THE GULF CRISIS IS EXPECTED TO HAVE AN ADVERSE IMPACT ON INFLATION IN THE COMING MONTHS, HE SAID.
TURNING TO THE LABOUR MARKET, MR TANG POINTED OUT THAT THE MARKET WAS STILL GENERALLY TIGHT IN THE FIRST HALF OF 1990.
THE
SEASONALLY ADJUSTED UNEMPLOYMENT RATE AND THE. UNDEREMPLOYMENT RATE, AT 1.6 PER CENT AND 0.9 PER CENT RESPECTIVELY IN THE SECOND QUARTER, WERE STILL LOW BY HISTORICAL STANDARDS.
"HOWEVER, THE OVERALL DEMAND FOR LABOUR HAD BECOME RELATIVELY LESS INTENSE THAN IN 1989, WITH THE NUMBER OF VACANCIES DECLINING FURTHER AND THE PROPORTION OF THE EMPLOYED POPULATION WORKING LONG HOURS ALSO BECOMING SMALLER," HE SAID.
ON THE PROPERTY MARKET, MR TANG SAID THAT HAVING REVIVED CONSIDERABLY SINCE LATE JULY LAST YEAR, THE MARKET SHOWED SOME CONSOLIDATION IN THE FIRST HALF OF THIS YEAR.
"PERFORMANCE OF THE VARIOUS SUB-SECTORS WAS MIXED. THERE WAS STILL A STRONG UNDERLYING DEMAND FOR SMALL TO MEDIUM-SIZED RESIDENTIAL FLATS, WHILE THE DEMAND FOR SHOPPING SPACE IN FAVOURED LOCATIONS WAS ALSO SUSTAINED, HE SAID.
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"BUT THE DEMAND AND HENCE PRICES AND RENTALS FOR OTHER TYPES OF PROPERTY GENERALLY SOFTENED, HE ADDED.
*
IN THE FINANCIAL SECTOR, THE OBSERVED DURING THE FIRST HALF OF 1990.
FOLLOWING
DEVELOPMENTS WERE
FIRST, REFLECTING THE MOVEMENT OF THE U.S. DOLLAR,
THE
FROM
EFFECTIVE EXCHANGE RATE INDEX OF THE HONG KONG DOLLAR INCREASED 109.3 AT THE END OF DECEMBER 1989 TO 111.3 ON APRIL 17. IT THEN EASED TO 110.0 IN MID-MAY, AND STOOD AT 110.1 AT THE END OF JUNE.
SECONDLY, INTEREST RATES IN THE LOCAL MONEY MARKET FIRMED UP APPRECIABLY IN MARCH AND APRIL, BUT EASED SOMEWHAT AFTER EARLY MAY.
/THIRDLY, THE