XN000022-1981-04-30 — Page 5

THURSDAY, APRIL 30, 1981

IN THE HANG SENG CPI, THE DROP IN THE WEIGHT FOR THE SERVICES SECTION WAS MOST NOTICEABLE. THIS WAS MAINLY DUE TO A SUBSTANTIAL DROP IN EXPENDITURE ON DOMESTIC SERVANTS. PART OF THE DROP COULD BE THE RESULT OF THE DIFFERENCES IN THE COVERAGE OF THE TWO SURVEYS, BUT A DECLINE WAS UNDERSTANDABLE IN THE LIGHT OF A TWO-FOLD RISE IN DOMESTIC SERVANT WAGE RATES BETWEEN 1973 AND 1980. THE WEIGHT FOR THE DURABLE GOODS SECTION ALSO INCREASED SUBSTANTIALLY.

THE HOUSING COMPONENT OF AN AVERAGE HOUSEHOLD BUDGET SHOWS ONLY A SMALL INCREASE BETWEEN 1973/74 AND 1979/80 BECAUSE A LARGE PROPORTION OF THE POPULATION IS NOW LIVING IN PUBLIC HOUSING ESTATES. THE WEIGHTS FOR THE HOUSING SECTION IN CPI(A) AND CPI(B) ARE AVERAGES OF TWO GROUPS OF HOUSEHOLDS WITH LARGE DIFFERENCES IN THE IR EXPENDITURE ON HOUSING.

HOUSEHOLDS LIVING IN PUBLIC HOUSING ESTATES OR TEMPORARY STRUCTURES +52 PER CENT OF THE HOUSEHOLDS IN CPI(A) AND 39 PER CENT IN CPI(B)+, ALLOCATE ON THE AVERAGE ONLY ABOUT 5 PER CENT OF THEIR TOTAL HOUSEHOLD EXPENDITURE TO HOUSING.

ON THE OTHER HAND, HOUSEHOLDS LIVING IN PRIVATE PERMANENT DWELLINGS ALLOCATE AROUND 25 PER CENT OF THE IR TOTAL EXPENDITURE TO HOUSING. THUS, THE AVERAGE FIGURES 15.05 PER CENT FOR CPI(A) AND 17.77 PER CENT FOR CPI(B) ARE SOMEWHERE IN BETWEEN THESE TWO EXTREMES.

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IT SHOULD ALSO BE NOTED THAT THE WEIGHT FOR THE HOUSING SECTION HAS BEEN AFFECTED BY THE FACT THAT THE MAJORITY OF DOMESTIC PREMISES ARE UNDER RENT CONTROL.

PRICE QUOTATIONS FOR THE NEW CONSUMER PRICE INDEXES

BESIDES WEIGHTS, PRICE QUOTATIONS ARE REQUIRED TO CALCULATE THE CPI'S. THESE ARE DERIVED FROM PRICE SURVEYS. A NUMBER OF IMPROVEMENTS HAVE BEEN MADE TO THESE SURVEYS. THE GEOGRAPHICAL COVERAGE OF THE SURVEY HAS BEEN EXTENDED TO THE NEW TERRITORIES.

NEW COMMODITIES AND SERVICES HAVE BEEN INCLUDED WHILE UNPOPULAR OR OBSOLETE ITEMS HAVE BEEN DELETED ON THE BASIS OF THE 1979/80 HES RESULTS. THERE ARE OVER 900 COMMODITIES/SERVICES IN THE NEW CPI.

INFORMATION ON THE TYPES OF RETAIL SHOPS WHICH CONSUMER PATRONIZE WAS COLLECTED IN 1979/80 HES FOR THE FIRST TIME. SUCH INFORMATION HAS BEEN UTILIZED IN THE SELECTION OF RETAIL OUTLETS FOR THE PRICE SURVEYS. AN AVERAGE OF 7 500 VISITS ARE PAID TO SOME 3 500 RETAIL OUTLETS EACH MONTH AND A TOTAL OF 45 000 PRICE QUOTATIONS ARE COLLECTED.

THERE IS A SEPARATE SURVEY TO COLLECT INFORMATION ON RENT AND THIS SURVEY HAS ALSO BEEN IMPROVED. A QUARTERLY SURVEY IS CONDUCTED. INFORMATION ON RENTAL MOVEMENTS IS BEING SOUGHT FROM A SAMPLE OF ABOUT 3 000 HOUSEHOLDS ON A QUARTERLY BASIS.

A FRESH SAMPLE IS SELECTED EACH YEAR, SUPPLEMENTED BY THE QUARTERLY ADDITION OF NEWLY COMPLETED AND LET DWELLINGS. THIS SAMPLE COVERS A REPRESENTATIVE CROSS-SECTION OF RENTED PRIVATE DWELLINGS IN THE URBAN DISTRICTS AS WELL AS THE NEW TOWNS AND MARKET TOWNS OF THE NEW TERRITORIES.

/THUS, ANY