E 9
It
a quarterly average evens out such exceptional quotations does not appear to be clearly understood that a "wholesale" Index Number is not the same thing as a "retail" Index Number or a "Cost of Living" Index Number, a mistake which has occurred in press references. Investigations were carried out as to the possibility of constructing a Retail Index Number, but it was soon found that there was very considerable variation in retail prices for the same article, due to differences in rent, overhead charges, and exchange contracts. It was also found impossible to construct a "Cost of Living" Index Number. Accuracy would require at least three classes for each racial group represented in the cosmopolitan population of the Colony. The "Cost of Living" Index compiled at Home often gives rise to misleading ideas, it being forgotten that the index is based on the cost of living for an average working man's family of the class known as "unskilled labour".
35. If the Hong Kong Index Number is compared with that of the Board of Trade, after being converted to the same base year, it will be seen that the Hong Kong number is considerably higher, and that this is not due solely to the fall in exchange. In the case of food-stuffs, obtained locally or from China, there has been a marked and continuous rise in prices over a number of years. A higher scale of living amongst the Chinese population generally has also led to a rise in prices of Chinese produced goods. Since 1914 the cost of many articles of food obtained from China has doubled.
12th February, 1932.
J. D. LLOYD,
Superintendent, Imports & Exports.
E 9
It
a quarterly average evens out such exceptional quotations does not appear to be clearly understood that a "wholesale" Index Number is not the same thing as a "retail" Index Num- ber or a "Cost of Living" Index Number, a mistake which has occurred in press references. Investigations were carried out as to the possibility of constructing a Retail Index Number, but it was soon found that there was very considerable variation in retail prices for the same article; due to differences in rent, overhead charges, and exchange contracts. It was also found impossible to construct a "Cost of Living" Index Number. Accuracy would require at least three classes for each racial group represented in the cosmoplitan population of the Colony. The "Cost of Living" Index compiled at Home often gives rise to misleading ideas, it being forgotten that the index is based on the cost of living for an average working man's family of the class known as "unskilled labour".
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35. If the Hong Kong Index Number is compared with that of the Board of Trade, after being converted to the same base year, it will be seen that the Hong Kong number is considerably higher, and that this is not due solely to the fall in exchange. In the case of food-stuffs, obtained locally or from China, there has been a marked and continuous rise in prices over a number of years. A higher scale of living amongst the Chinese population generally has also led to a rise in prices of Chinese produced goods. Since 1914 the cost of many articles of food obtained from China has doubled.
12th February, 1932.
J. D. LLOYD,
Superintendent, Imports & Exports.
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