Leading a simple but pleasant life, and equipping yourselves by learning are the best ways out of inflation, advised those who walked through the worst time of inflation in Hong Kong.

Daisy Luk Nga-ping, 48, and her husband had a hard time paying their house mortgage when the interest rate jumped over ten per cent in late 1980s. Her husband had an unstable income which could be cut anytime and they also had to support their elderly parents.

She said they could not afford to go out much and always stayed at home. If they were invited to wedding banquets, they had to save an extra sum to buy a wedding gift. Their savings were often used for such unexpected expenses.

Paying a home mortgage was a great challenge for the fresh graduates in the 1980s and 1990s when they were just married. Thirty-nine-year-old Ida Man Siu-lan paid about HK$4,000 every month for her mortgage when the interest rate soared to 13 to 14 per cent in the late 1980s.

"At that time, the average wage was about $7, 000 for a white-collar worker. Luckily, with my skills, my salary was as high as $15, 000, so it was not difficult for me to repay the mortgage," said Man, a cosmetologist. "However, it was really hard for others to afford such a high interest rate," she added.

According to the Census and Statistics Department, the most serious inflation occurred in the 1980s to 90s.

The Composite Consumer Price Index (CPI) recorded the greatest increase in 1991 with 11.6 per cent while the second largest increase took place in 1982 with 10.9 per cent.

The increase in the Composite CPI from 2006 to 2007 was two per cent.

The index reflects the impact of consumer price changes on all households on the economy as a whole.

Another indicator of inflation, CPI (A), (B) and (C) also showed that the worst time in Hong Kong was in 1980, when it rose for 15 per cent. The index is compiled based on the expenditure pattern of households in the relatively low, medium and high expenditure ranges respectively.

Despite the high inflation rate, Yan Wai-hin, instructor of the Department of Economics of the Chinese University of Hong Kong said that young people in the 1980s to 90s could manage the high interest rate because they were willing to work hard.

Yan said: "A couple would have to rear many children in the old days. Parents could not afford much, and so less pocket money was given to their children.

"However, today's couples have only one or two children. They support their children in every aspects, even financially. Youth nowadays hardly face any pressure from inflation," he added.

Meanwhile, the inflation in the 1980s to 90s had pushed young people to pursue further education which helped the expansion of Hong Kong's economy."

Chu Yin-wah, 45, an associate professor at the Hong Kong Baptist University, said that inflation did not affect her college life in the 1980s.

"We did not spend much. I only paid school fees and daily expenses," said Chu. "We did not have as much entertainment as today's teenagers, (such as) playing computer games, singing karaoke or watching movies."

She added: "Some other people lived a frugal life. They had nothing but bare walls in their houses." People could not afford to buy furniture, let alone spend money on entertainment.

Mavis Tong Mei-po, a 45-year-old housewife said though she did not have much income in the 1980s, she still had fun with self-made entertainment which was free of charge.

"For example, one game we played was throwing rice bags," she said. It is a game that enhances hand-eye coordination as players have to throw the bags and cath them in the air. "I sewed the little bags with leftover cloth and filled them with rice. I did not need to pay anything for this entertainment," added Tong.

"Sometimes, we (girls) went to parties to meet new boyfriends. They charged the girls with low entrance fees or even free. Those parties were quite good. We only danced there, but we still had lots of fun."

Ngai Ngan-pun, president of Research Committee 34 - Sociology of Youth of the International Sociological Association, said teens in the 1980s-90s led a frugal existence and did not consume much.

Ngai said that activities organised by youth centres were very popular among teenagers at that time. Located near public housing estates, the centres charged low fees for their diverse activities such as sports games, orienteering and leadership training.

"Singing folk songs was also popular in the 1970s," said Ngai. Some evening folk song parties were held by schools, youth centres or in the neighbourhood.

In the 1980s, teenagers looked for products at reasonable prices, added Ngai.

He said that teenagers in the past only wanted something that was simple, practical and durable. "They were not obsessed about brand name products like LV (Louis Vuitton), said Ngai. "Like jeans, they would wear them for years."

Ngai also advised today's teenagers to learn how to consume appropriately by making sensible judgments. "They should not chase after brand names," he said. "Learning how to manage their money is also important."

Raymond So Wai-man, associate professor of the Department of Finance of the Chinese University, said that students should also reflect on their lifestyle, particularly during times of inflation.

"Indeed, the problem is not inflation, but that our society has become too greedy," said Dr So.

He said that, inflation was not a big problem in the 1980s. "Our society was relatively poor. Students were less demanding on what they wanted out of life," he added.

"For example, you (students) all complain about the (university) canteens' quality of food. In the 1980s, it was even worse, yet we didn't mind," Dr So said. This is due to the different living standard, he added.

Perceiving from another angle, Dr So said inflation could be seen as an opportunity for today's teenagers.

Dr So said high inflation encouraged university graduates to better prepared themselves for future career. By enhancing themselves through learning, they could choose a better job, he said.

"Inflation should not be considered a burden for university students, but an opportunity," he said.

He suggested that teenagers not to rely on short-term investments to fight against inflation. He said that increasing one's knowledge is the most effective way out.

"The value of human capital increases over time," he said. "Your salary will then increase when inflation increases. You will eventually be better off!"