TNAG-1754-FCO40-2474-Future-of-Hong-Kong-Parliamentary-debates-1988 — Page 64

SALAHL (3)

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3. Risk of inflation

There was a modest increase in the rate of inflation in 1987. The most representative consumer price index increased by 5.5% compared with 2.8% in 1986. The upward trend has continued into 1988. this acceleration is partly due to the rising costs of imports, but the main cause has been the strength of the economy, putting strong pressure on property prices, rentals, wages and salaries. upward movement in inflation must of course be watched with care. But current levels remain low by historical standards.

The

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