TNAG-2292-FCO40-3304-Official-visits-from-Hong-Kong-to-China-1991 — Page 39

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29

39.

While China remains the largest supplier of Hong

Kong's imports, Hong Kong's retained imports from China

have been declining. More than 90% of the imports from

China are subsequently re-exported. Even for foodstuffs,

China now accounts for only about one-quarter of the total

value of imported foodstuffs retained for use in Hong Kong,

or less than 20% of the total consumption which includes

also the consumption of locally produced food items. Thus

though the prices of foodstuffs imported from China

increased due to the recent flooding, the impact on

the level of retail prices in Hong Kong is unlikely to be

very

significant. Despite the fact that the retail price

index of goods from China rose faster in the second quarter

than in the first quarter of 1991, it is still helping to

dampen the overall rate of inflation in Hong Kong(3),

even

have

(35) Year-on-year rate of increase (%) in :

Retail price index of goods from China

CPI (A)

All

consumer

goods

All

consumer

Foodstuffs

goods

Foodstuffs

1990 Annual

3.7

3.5

9.8

9.9

H1 H2

3.4

3.3

9.3

10.1

4.1

3.7

10.2

9.8

1991 Q1

222

3.8

3.4

11.9

10.8

Q2

5.3

5.4

13.1

11.8

H1

4.5

4.4

12.5

11.3

Economic Analysis Division Economic Services Branch Government Secretariat 26 September 1991

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