XN000022-1974-10-28 — Page 2

MONDAY, OCTOBER 28, 1974

NEW CONSUMER PRICE INDEXES INTRODUCED

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TWO NEW CONSUMER PRICE INDEXES DESIGNED TO PROVIDE AN UP-TO-DATE REFLECTION OF THE MOVEMENTS OF HONG KONG'S COST OF LIVING ARE NOW AVAILABLE.

LABELLED AS CPI(A) AND CPI(B), THE NEW INDEXES SERVE THE GENERAL CONSUMER PRICE TO REPLACE THE EXISTING ONES - INDEX AND THE MODIFIED CONSUMER PRICE INDEX – WHICH HAVE DEEN USED FOR OVER A DECADE,

THE NEW INDEXES ARE BASED ON UP-TO-DATE HOUSEHOLD EXPENDITURE AND PRICING SURVEYS CONDUCTED BETWEEN JULY 1973 AND JUNE 1974. THE SURVEYS COVERED 2,864 HOUSEHOLDS, 3,600 ITEMS OF COMMODITIES AND SERVICES AND 2,000 RETAIL OUTLETS AND SERVICE ESTABLISHMENTS.

OF THE HOUSEHOLDS SURVEYED, 1.456 WERE IN THE EXPENDITURE RANGE OF $400-$1,500 WHILE 1,408 IN THE $1,500-$3,000 BRACKET. THE CPI(A) IS BASED ON RESULTS FROM THE FIRST GROUP WHILE CPI(B) ON THE SECOND.

THE NEW INDEXES ALSO TAKE ACCOUNT OF THE CHANGES IN THE GEOGRAPHICAL DISTRIBUTION OF HOUSEHOLDS OVER THE YEARS AND COVERED FAMILIES IN SATELLITE TOWNS.

MR. DAVID WHITELEGGE, THE COMMISSIONER FOR CENSUS AND STATISTICS, SAID THAT THE INDEXES WERE DESIGNED TO BE

IN THIS CONNECTION, REPRESENTATIVE OF STABLE URBAN HOUSEHOLDS, HOUSEHOLDS COMPRISING OLD PERSONS, SINGLE PERSONS, HOUSEHOLDS IN TEMPORARY STRUCTURE AND MARINE HOUSEHOLDS ARE NOT INCLUDED.

ALSO EXCLUDED ARE DISTRICTS EITHER WHERE HOUSEHOLDS WERE WIDELY SCATTERED OR WHERE THE MAJORITY OF THEM CAN BE EXPECTED TO BE OUTSIDE THE EXPENDITURE RANGE SURVEYED.

EXPLAINING THE WORKINGS OF THE NEW INDEXES, MR. WHITEL EGGE SAID THAT THE HOUSEHOLDS COVERED IN THE EXPENDITURE BRACKET REPRESENTED ABOUT 80 PER CENT OF THE TOTAL IN HONG KONG.

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HE NOTED THAT THE PRESENT EXPENDITURE BRACKETS AND THOSE OF TEN YEARS AGO WHEN THE CURRENT CONSUMER PRICE INDEX WAS DRAWN UP WERE NOT EXACTLY THE SAME.

HOWEVER GENERALLY HOUSEHOLD EXPENDITURE PATTERNS SEEMED NOT TO HAVE CHANGED TOO MUCH. OBVIOUSLY CHANGES THERE WERE, FOR HOUSEHOLDS TENDED NOW TO SPEND LARGER PROPORTIONS OF THEIR TOTAL EXPENDITURE ON FOOD AND TRANSPORT, AND SMALLER PROPORTIONS ON SERVICES, ALCOHOLIC DRINKS AND TOBACCO.

/IT IS .............

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