Table 3 Impact of oil price hike on consumer price
inflation in Hong Kong
Weight in
CPI (A) (total=100)
increase in overall CPI(A) from a 10% increase in the prices of oil products
A.
Dirent impsat
0.111
Fuel charges
Petrol and diesel
0.13
0.013
LPG
0.64
0.064
Kerosene
0.34
0.034
B.
Indirect impact
0.487
Transport fares
3.86
0.107
(including franchised
buses. nuklin 14
ight
buses, taxis and
ferries)
Towngas
0.42
0.088
Charges for meals
20.94
0.220
taken in restaurants
Fresh fish
1.50
0.022
Other commodities
0.05
(assumed combined effect)
C.
Longer-run impact
Overall impact
0.3
0.9
Notes: (1)
The price of crude anticipation of
barrel.
011 has been on the rise in the outcome of the OPEC meeting in July. Towards the end of July, it rose to around US$18 per barrel. Taking the average from May to July, the price of crude oil was about US$16 per Assuming this price to settle at around US$25 per barrel, the prices of refined oil products in Hong Kong are likely to increase by about 10% generally (but price increase for naphtha for Towngas production assumed to be greater). This percentage increase is taken as the basis for estimating the effect on the CPI (A) in respect of the commodities identified in this table.
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