XN000022-1993-04-23 — Page 2

INFLATION EASES IN MARCH

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FRIDAY, APRIL 23, 1

FIGURES RELEASED TODAY (FRIDAY) BY THE CENSUS AND STATISTICS DEPARTMENT SHOWED THAT INFLATION HAD EASED MARKEDLY IN MARCH.

THE INCREASE IN THE CONSUMER PRICE INDEX (A) FOR MARCH HAS FALLEN TO 7.8%, COMPARED WITH THE SAME MONTH LAST YEAR.

THIS WAS THE LOWEST SINCE DECEMBER 1988. THE CORRESPONDING INCREASE IN FEBRUARY THIS YEAR WAS 8.6%.

WELCOMING THE MARCH FIGURE, THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, DESCRIBED THIS SIGNIFICANT MODERATION AS ENCOURAGING.

"CONSUMER PRICE INFLATION IN TERMS OF CPI(A) THE FIRST QUARTER THIS YEAR. THIS REPRESENTED AN FROM 9.4% IN THE FOURTH QUARTER LAST YEAR," HE SAID.

"AND 9.5% STILL SEEMS A REALISTIC FORECAST WHOLE, HE ADDED.

"

STOOD AT 8.8% IN APPRECIABLE DROP

FOR 1993 AS A

HOWEVER, MR MACLEOD CAUTIONED THAT WHILE THE PRICE INCREASES FOR MANY CONSUMER ITEMS WERE MODERATE, THE INCREASES IN THE COST OF HOUSING AND IN THE PRICES OF VARIOUS CONSUMER SERVICES WERE STILL SIGNIFICANT.

THE MODERATION IN CONSUMER PRICE INFLATION IN MARCH WAS MAINLY DUE TO LOWER PRICES OF FRESH VEGETABLES AND A LESS RAPID INCREASE IN RENT FOR PRIVATE DWELLINGS.

IN ADDITION, THE RELATIVELY HIGH BASE OF COMPARISON MARCH RESULTING FROM A CHANGE IN THE TIMING OF THE PERIODICAL REVISIONS IN SOME PUBLIC HOUSING ESTATES ALSO CONTRIBUTED.

IN

LAST

RENT

THE CPI(B) AND THE HANG SENG CPI WERE HIGHER BY 8.5% AND 9.2% RESPECTIVELY IN MARCH THAN IN THE SAME MONTH LAST YEAR. THE CORRESPONDING INCREASES IN FEBRUARY 1993 WERE BOTH 9.1%.

THE SLIGHTLY FASTER INCREASE IN THE HANG SENG CPI IN MARCH THAN IN FEBRUARY WAS MAINLY DUE TO HIGHER PRICES OF OUTERCLOTHING AND HIGHER CHARGES FOR PACKAGE TOURS WHICH LARGELY OFFSET THE LOWER PRICES OF FRESH VEGETABLES AND THE LESS RAPID INCREASE IN RENT FOR PRIVATE DWELLINGS.

THE

COMPOSITE CPI, WHICH WAS COMPILED BASED ON THE COMBINED EXPENDITURE PATTERN OF HOUSEHOLDS COVERED BY THE THREE CPIS, SHOWED AN INCREASE OF 8.4% IN MARCH OVER THE SAME MONTH LAST YEAR. CORRESPONDING INCREASE IN FEBRUARY 1993 WAS 8.9%.

THE

GOODS REGISTERED DECREASES

COMPARING MARCH 1993 WITH MARCH 1992 THE PRICES

OF (-0.2% IN THE CPI(A) AND -0.5%

+

DURABLE

IN THE

CPI(B)).

/RELATIVELY SLOWER