TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 247

Introduction

CHAPTER 6: PRICES

6.1

The rate of inflation remained low in the first half

(1)

(A)

of 1986. The year-on-year rate of increase of the Consumer Price Index

was 2.5% in the second quarter of 1986, against 3.3% in the second quarter of 1985 and 2.6% in the first quarter of 1986.

was attributable to a

Internally,

6.2.

The low rate of inflation

number of internal and external factors. aggregate demand in the economy was not so strong as to impose undue pressure on the aggregate supply of resources, and hence on the general price level. Externally, the rates of inflation in Hong Kong's major trading partners were generally

(1)

/moderate

The characteristics of

There are three consumer price indices: Consumer Price Indices (A) and (B), and the Hang Seng Consumer Price Index. the three indices are as follows:

Approximate proportion of urban households covered

Monthly expenditure

(%)

CPI (A)

50

range in 1979/80

($)

1,000 to 3,499

CPI (B)

30

3,500 to 6,499

Hang Seng CPI

10

6,500 to 19,999

53