XN000022-1995-06-07 — Page 65

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55 -

A B D

compilations of signatures (35);

(1)

letters (1,252);

(2)

(3)

banners (37) and

(4)

miscellaneous items (55).

The letters are kept on file in Government House and in the policy branches concerned. The other items are disposed of after follow-up action has been initiated.

End/Wednesday, June 7, 1995

Measures to keep inflation rate within Government estimate

Following is a question by Dr the Hon David Li and a written reply by the acting Financial Secretary, the Hon T H Chau, in the Legislative Council today (Wednesday):

Question:

As Japan is our second largest importer, supplying almost 16% of the territory's imports and 24% of retained imports, the current appreciation of the Japanese Yen is having a direct impact on the territory's inflation. Moreover, the average rate of inflation for the first quarter of this year was 9.5%, one percentage point higher than the Government's original estimate. In particular, those components in the CPI having a high import content. such as clothing, footwear and miscellaneous goods showed rather faster price increases. In this connection, will the Government inform this Council what are the short-term and long-term measures which the Government will implement in order to keep the inflation rate within Government's estimate and maintain the territory's competitiveness?

Reply:

In the May update of the economic forecast for 1995, we have revised the forecast of consumer price inflation, in terms of the Consumer Price Index (A), upwards from 8.5% to 9.0%, in the light of the higher actual outturn in the first four months of the year.