XN000022-1993-02-22 — Page 2

MONDAY, FEBRUARY 22, 1993

CONSUMER PRICE INDICES FOR JANUARY

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A DIFFERENCE IN TIMING FOR THE LUNAR NEW YEAR WHICH OCCURRED IN JANUARY THIS YEAR BUT IN FEBRUARY LAST YEAR CAUSED THE CONSUMER PRICE INDICES (CP1) TO RISE FASTER IN JANUARY, BRINGING THE RATE OF INCREASE TO MARGINALLY ABOVE 10%. THIS RELAPSE WAS LIKELY TO BE TEMPORARY.

ACCORDING TO THE FIGURES RELEASED TODAY (MONDAY) BY THE CENSUS AND STATISTICS DEPARTMENT, THE CONSUMER PRICE INDEX (A) WAS 10.1% HIGHER IN JANUARY 1993 THAN THE SAME MONTH LAST YEAR. IN DECEMBER 1992, THE CORRESPONDING INCREASE WAS 9.1%

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THE HIGHER YEAR-ON-YEAR RATE OF INCREASE IN JANUARY WAS MAINLY DUE TO HIGHER PRICES FOR MOST FRESH FOOD ITEMS, PARTICULARLY FRESH FRUIT, PORK AND LIVE POULTRY, AS WELL AS HIGHER CHARGES FOR HAIRDRESSING AND PACKAGE TOURS AROUND THE LUNAR NEW YEAR PERIOD.

THE CPI(B) AND THE HANG SENG CPI WERE HIGHER BY 10.3% AND 10.1% RESPECTIVELY IN JANUARY 1993 THAN IN JANUARY 1992. THE CORRESPONDING INCREASES IN DECEMBER 1992 WERE BOTH 9.7%.

THE COMPOSITE CPL, WHICH WAS COMPILED BASED ON THE COMBINED EXPENDITURE PATTERN OF HOUSEHOLDS COVERED BY THE THREE CPIS, SHOWED AN INCREASE OP 10.2% IN JANUARY 1993 OVER TUF SAME MONTH IN 1992. THE CORRESPONDING INCREASE IN DECEMBER 1992 WAS 9.0 6%.

COMMENTING ON THE FIGURES, TUE FINANCIAL SECRETARY, MR HAMISH MACLEOD, SAID PAST EXPERIENCE INDICATED THAT INFLATION IN JANUARY AND FEBRUARY TENDED TO BE MORE VOLATILE BECAUSE OF THE LUNAR NEW YEAR FESTIVAL.

"THE RELAPSE IN JANUARY SHOULD BE SEEN IN THIS CONTEXT, AS THE FASTER PRICE INCREASES WERE CONCENTRATED ON THOSE ITEMS KITH A GREATER CONSUMER DEMAND DURING THE FESTIVAL HE SAID.

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COMPARING JANUARY 1993 WITH JANUARY 1992, RELATIVELY SLOWER INCREASES IN PRICES WERE RECORDED FOR DURABLE GOODS (1.9% IN THE CPI(A) AND 2.0% IN THE CPI(B)); FUEL AND LIGHT (5.5% IN BOTH CPI(A) AND CPI (B)); MISCELLANEOUS GOODS (6.8% IN BOTH CP1 (A) AND CPI(B)); TRANSPORT (6.9% IN THE CPI(A) AND 7.5% IN THE CPI{B}); FOOD (EXCLUDING MEALS AT RESTAURANTS) (8.0% AND 8.2%); CLOTHING AND FOOTWEAR (8.7% AND 8.5%); AND MEALS AT RESTAURANTS (9.7% AND 9.8%).

ON THE OTHER HAND, RELATIVELY FASTER INCREASES IN PRICES WERE RECORDED FOR HOUSING (15.5% IN THE CPI(A) AND 15.6% IN THE CPI(B)); ALCOHOLIC DRINKS AND TOBACCO (14.2% AND 12.8%); AND SERVICES (12.4% AND 11.3%).

WAS, ON

FOR THE THREE MONTHS ENDING JANUARY 1993, THE (P1(A) AVERAGE, HIGHER BY 9.6% THAN IN THE THREE MONTHS ENDING JANUARY THE CORRESPONDING FIGURE FOR THE CPI(B)

was 9.9%.

1992.

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