TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 79

of

the

exerted

(2)

has

Renminbi against the Hong Kong dollar

some dampening effect on the overall uptrend in consumer prices. Third, as the rate of increase in import prices started to pick up only in the second quarter of 1986, its effect has not yet been fully felt at the retail level.

Consumer prices

6.3

Seng CPI

Comparing the third quarter of 1986 with the same

quarter in 1985, the Consumer Price Index (A) increased by 2.6%, the Consumer Price Index (B) by 3.3%, and the Hang Seng Consumer Price Index by 5.5%. For the first nine months as a

whole the corresponding year-on-year increases were 2.6%, 3.3% and 5.0%. The rate of increase for the Hang was significantly higher than those for the CPI (A) and CPI(B)

because, due to differences in consumption patterns, consumers in the Hang Seng CPI expenditure group have been affected more by rental increases and benefited less from the fall in import prices of foodstuffs and consumer goods from

China.

/Consumer

(2) Between 30 September 1984 and 30 September 1986, the Renminbi was devalued on a number of occasions against the Hong Kong dollar and the accumulated magnitude of devaluation was 30%. The latest occasion was on 5 July 1986, where the extent of devaluation was as much as 13.6%.

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