TNAG-1942-FCO40-2768-Internal-economic-situation-in-Hong-Kong-1989 — Page 52

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8.

Within the local economy, consumption

expenditure remained strong, supported by

increases in real incomes over the past couple

of years. As an indication, retained imports of

foodstuffs and of consumer goods grew by about

17% and 7% respectively in real terms in the

first quarter compared with a year earlier.

Reflecting the continued high level of

investment in plant and equipment, retained

imports of capital goods grew by about 17% in

real terms over the same period.

1

9.

On inflation, the Consumer Price Index

(A) recorded a year-on-year rate of increase of

9.8% in the first quarter, compared with 7.9% in

the fourth quarter of last year. The

corresponding rates of increase for the CPI(B)

and the Hang Seng CPI in the first quarter were

9.4% and 10.7%. Increases in the retail prices

of foodstuffs and in charges for -services

accounted for a major part of the overall

increase in consumer prices.