TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 78

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

Introduction

CHAPTER 6: PRICES

6.1

(1)

as

The rate of inflation remained low in the third

quarter of 1986. Taking the Consumer Price Index (A)

an indicator, the year-on-year rate of increase was 2.6% in

the third quarter, about the same as in the previous two

quarters.

6.2

low when

The rate of increase in

compared with the rate

consumer prices was also

of increase in import

Kong economy, aggregate

impose undue pressure on

prices. This phenomenon may be explained by a number of

factors. First, within the Hong

demand has not been so strong as to

the aggregate supply of resources, and hence on the general

price level of locally produced goods and services. Second,

as about 43% of Hong Kong's imports of foodstuffs and about

44% of the imports of consumer goods in the first nine months

of 1986 were from China, the fall in the import prices of

Chinese goods in general, mainly due to the sharp devaluation

(1)

/of

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

The basis for these

Approximate proportion of urban households covered

(%)

Monthly expenditure

range in 1979/80

($)

1,000 to 3,499

CPI (A) CPI (B)

Hang Seng CPI

0320

50

30

3,500 to 6,499

10

6,500 to 19,999

56

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