TUESDAY, OCTOBER 27, 1992
7
FS COMMENTS ON CONSUMER PRICE INDICES
COMMENTING ON THE CONSUMER PRICE INDICES FOR SEPTEMBER, FINANCIAL SECRETARY, MR HAMISH MACLEOD, SAID TODAY (TUESDAY):
"SPECIAL FACTORS AFFECTING YEAR-ON-YEAR VEGETABLE PRICES, PLUS INCREASES IN PUBLIC HOUSING THE FIGURES LAST MONTH.
COMPARISONS
THE
OF
RENTS, DISTORTED
"THIS RELAPSE IN OUR INFLATION FIGURES IS CERTAINLY DISAPPOINTING, BUT WE ARE STILL ON TARGET FOR OUR 9.5% FORECAST OF THE AVERAGE ANNUAL RATE OF INFLATION FOR THE WHOLE YEAR.
"WE MUST NOT BE TOO DISPIRITED BY ONE MONTH'S FIGURES, AND THE ISSUE OF INFLATION MUST ALSO BE SEEN IN THE CONTEXT OF OUR CONTINUED STRONG ECONOMIC GROWTH WHICH WAS UNDERLINED BY THE GOOD TRADE FIGURES RELEASED YESTERDAY.
HAVE A AND STRONG
"COMPARED WITH MUCH OF THE REST OF THE WORLD, WE WELL-BALANCED AND PROSPEROUS ECONOMY WITH FULL EMPLOYMENT ECONOMIC GROWTH, MR MACLEOD SAID.
"OUR EFFORTS AGAINST INFLATION WILL OF COURSE MACLEOD ADDED.
CONTINUE," MR
"THE GOVERNOR ANNOUNCED A MIDDLE INCOME HOUSING SCHEME IN HIS LEGISLATIVE COUNCIL ADDRESS, WHICH WILL HELP PROTECT THE MIDDLE CLASS AGAINST THE IMPACT OF PROPERTY PRICE INCREASES, AND THERE ARE ALSO SIGNS THAT SPECULATION ON DOMESTIC PROPERTY HAS EASED.
"LAST MONTH'S RELAPSE SHOULD BE SEEN AGAINST THIS MORE HOPEFUL BACKGROUND, HE SAID.
T
GOVERNMENT STUDIES SHOW THAT THE UNUSUALLY SHARP RISES IN VEGETABLE PRICES, TOGETHER WITH INCREASES IN SOME PUBLIC HOUSING RENTS, WERE THE MAIN FACTORS CONTRIBUTING TO UPWARD MOVEMENTS LAST MONTH (SEPTEMBER) IN YEAR-ON-YEAR CONSUMER PRICE INDICES.
IN
CONSUMER PRICE INDICES RELEASED TODAY SHOW THAT THE CPI (A) SEPTEMBER WAS 9.9% HIGHER THAN A YEAR EARLIER. CORRESPONDING YEAR-ON-YEAR INCREASES WERE 8.3% IN AUGUST, 8.8% IN JULY AND 9.3% IN
JUNE.
THE GOVERNMENT ECONOMIST, MR K Y TANG, SAID: "TAKING THE FIRST NINE MONTHS OF 1992 TOGETHER, THE AVERAGE YEAR-ON-YEAR INCREASE IN THE CPI(A) WAS 9.4%, WHICH IS CLOSE TO OUR FORECAST OF AN AVERAGE OF 9.5% FOR THE WHOLE OF THIS YEAR.
THE
"THE CPI FIGURES FOR SEPTEMBER, COMPARED WITH THE SAME MONTH LAST YEAR, HAVE BEEN HEAVILY DISTORTED BY FACTORS AFFECTING DEMAND, SUPPLY, AND HENCE THE PRICES OF VEGETABLES.
/"BASIC FOODSTUFFS