63
Inflation rates
Following is a question by the Hon Martin Barrow and a written reply by the Secretary for Financial Services, Mr Michael Cartland, in the Legislative Council today (Wednesday):
Question:
Regarding the Government's announcement that the inflation rate in 1995 will be 0.5% higher than originally forecast, will the Government inform this Council:
(a) of the average and year-on-year actual/forecast inflation rates in 1994
and 1995 in respect of the following categories:
(b)
(c)
Reply:
(a)
Average
Year-on-Year
1994 Actual
1995
Forecast
1994 Actual
1995 Forecast
CPI "A" CPI "B" Composite
of the reasons for the differences between the average and year-on-year figures in each category; and
whether the indices and the weightings being used can correctly measure current consumption habits and whether the Government will carry out a review of the methodology?
Currently, the Government produces a forecast on the Consumer Price Index (A) only. The actual average increase in the CPI(A), CPI(B) and Composite CPI in 1994, together with the forecast average increase in the CPI(A) in 1995, are given below: