(b)
(c)
CPI(A) CPI(B) Composite CPI
- 64.
Forecast
average increase in 1995
9.0%
Actual
average increase
in 1994
8.1%
8.6%
8.8%
The increases in the CPIs on an annual average basis are basically the same as their year-on-year increases averaged over the respective twelve months.
The differential movements in the CPIs were mainly due to differences in the consumption patterns of the household expenditure groups and in the price movements of the respective components covered by the three indices. In 1994, consumers in the CPI(A) expenditure group benefited more from the slower increase in the prices of basic foodstuffs and other consumer goods imported from China, while consumers in the CPI(B) expenditure group were affected more by the accelerated increases in the prices of clothing and footwear and in housing rentals. As a result, both the CPI(B) and the Composite CPI showed faster increases than the CPI(A) in 1994.
The CPIs are compiled based on the average expenditure patterns of households ascertained from the 1989/90 Household Expenditure Survey (HES). Past experience shows that average household expenditure patterns change only gradually over time. So as at present they are not reckoned to be significantly out-dated for the purpose of CPI compilation.
Under the current practice, the household expenditure patterns and hence the weights for the CPIs are updated once every five years based on the results of a new round of HES. This practice is in line with the standards adopted in statistically advanced countries/territories.
The current round of the HES, which is the 1994/95 HES, has already been conducted for some months and is now proceeding to an advanced stage. It covers the expenditure patterns of households over the period from October 1994 to September 1995. When the summary results of this survey become available, the weights of the CPIs will be updated accordingly. The Government's plan is to publish a new series of CPIs with updated expenditure weights in April 1996.
End/Wednesday, July 12, 1995