TNAG-0845-FCO40-1055-Visits-of-Foreign-and-Commonwealth-officials-to-Hong-Kong-1979 — Page 151

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Nonetheless the problem of excess demand persists. The

labour market is still tight despite the arrival of some 200,000

Chinese immigrants in the past 18 months. Wage rates are up by

20% on last year's levels and this has contributed to rising

inflation.

Consumer prices increased at an annual rate of about

% in the first half of 1979 (1978: 7%) while in the construction

industry costs have increased over the same period at an annual

rate of between 30 and 40% (1978: 20%).

Hong Kong and General Department

September 1979

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