XN000022-1992-05-26 — Page 3

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TUESDAY, MAY 26, 1992

THE COMPOSITE CPI, WHICH WAS COMPILED BASED ON THE COMBINED EXPENDITURE PATTERN OF HOUSEHOLDS COVERED BY THE THREE CPIS, SHOWED AN INCREASE OF 9.2% IN APRIL 1992 OVER THE SAME MONTH IN 1991. CORRESPONDING INCREASE IN MARCH WAS 9.7%.

THE

THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, WELCOMED THE CONTINUED MODERATION IN CONSUMER PRICE INFLATION, NOTING THAT THIS WAS THE SECOND CONSECUTIVE MONTH IN WHICH THE INFLATION RATE FELL BELOW DOUBLE DIGIT LEvel.

THE FURTHER DECELERATION IN THE YEAR-ON-YEAR RATES OF INCREASE IN THE CPI(A) AND CPI(B) IN APRIL 1992 WHEN COMPARED TO MARCH 1992, WAS PARTLY DUE TO LESS RAPID INCREASE IN RENT.

IN

ANOTHER CONTRIBUTING FACTOR WAS THE INCREASE IN BUS FARE LATE MARCH LAST YEAR, WHICH THUS CONSTITUTED A HIGH BASE OF COMPARISON FOR THE MONTH OF APRIL THIS YEAR.

A FURTHER FACTOR WAS THE CONTINUING EFFECT OF THE BUDGET PACKAGE THIS YEAR, WHICH SHOULD HAVE A MODEST DEFLATIONARY EFFECT.

COMPARING APRIL 1992 WITH APRIL 1991, THE PRICES OF ALCOHOLIC DRINKS AND TOBACCO REGISTERED DECREASES (-10.8% IN CPI(A) AND -6.0% IN CPI(B)).

RELATIVELY SLOWER INCREASES IN PRICES WERE RECORDED FOR DURABLE GOODS (2.7% IN BOTH CPIS); FUEL AND LIGHT (6.0% AND 5.7%); TRANSPORT (6.0% AND 6.1%); MISCELLANEOUS GOODS (6.9% AND 6.4%); AND CLOTHING AND FOOTWEAR (8.8% AND 8.7%).

WERE AND

ON THE OTHER HAND, RELATIVELY FASTER INCREASES IN PRICES RECORDED FOR FOOD (EXCLUDING RESTAURANT MEALS) (10.3% IN CPI (A) 9.4% IN CPI(B)); MEALS AT RESTAURANTS (10.9% IN BOTH CPIS); SERVICES (11.3% AND 11.0%); AND HOUSING (11.3% AND 11.5%).

COMPARING APRIL 1992 WITH MARCH 1992, THE CPI(A) WAS HIGHER BY 1.2%, THE CPI(B) BY 1.3%, AND THE HANG SENG CPI BY 0.8%. THIS COMPARISON WAS, HOWEVER, AFFECTED BY SEASONAL FACTORS.

THE INCREASES IN THE INDICES WERE LARGELY DUE TO HIGHER PRICES OF FRESH VEGETABLES AND OUTERCLOTHING, AND HIGHER CHARGES FOR MEALS AT RESTAURANTS.

RENT FOR SOME PRIVATE AND PUBLIC HOUSING UNITS WERE ALSO HIGHER IN APRIL ALTHOUGH THE YEAR-ON-YEAR RATE OF INCREASE HAD MODERATED WHEN COMPARED WITH THE PRECEDING MONTH.

FOR THE THREE MONTHS ENDED APRIL 1992, THE CPI(A) WAS, ON AVERAGE, HIGHER BY 9.6% THAN IN THE THREE MONTHS ENDED APRIL 1991. THE CORRESPONDING FIGURE WAS 9.7% FOR THE CPI(B).

FOR THE PERIOD OF JANUARY TO APRIL 1992, BOTH THE CPI(B) WERE, ON AVERAGE, HIGHER BY 9.8% THAN IN THE PERIOD OF 1991.

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CPI (A) CORRESPONDING

AND

/FOR THE