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Rebasing of the Consumer Price Indices
According to the results of the 1994-95 Household Expenditure Survey (HES), the share of household expenditure on housing has increased while that on food decreased over the past five years.
The 1994-95 HES, which was conducted jointly by the Census and Statistics Department (C&SD) and the Hang Seng Bank, took place from October 1994 to September 1995.
"Up-to-date information on expenditure patterns of households is collected in the HES. The information on expenditure patterns was used together with data on price movements collected continuously by the C&SD in compiling the monthly Consumer Price Indices (CPIs)", said Mr Frederick Ho, Commissioner for Census and Statistics.
The existing series of the CPIs are based on the spending patterns obtained from a HES conducted in 1989-90. The results of the 1994-95 HES have been used in rebasing the CPIs. The expenditure ranges and weighting patterns of the CPIs were updated.
Mr Ho explained that the practice in Hong Kong was to rebase the CPIs once every five years. This has been the case for a long time and can ensure that up-to-date household expenditure patterns could be accurately reflected in the compilation of the CPIs. It conforms with international standards and practices.
"The rebased series of the CPI(A) continues to relate to about 50% of households, in the relatively low expenditure range. Their average monthly expenditure during the new base period of October 1994 to September 1995 was between $4,000 and $15,999," he said.
"The rebased series of CPI(B) relates to about 30% of households, in the medium expenditure range. These households spent between $16,000 and $29,999 a month in the same base period.
"The Hang Seng CPI, which relates to households in the relatively high expenditure range, has also been rebased. The Hang Seng CPI relates to about 10% of households, whose monthly expenditure in the base period was between $30,000 and $59,999."
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