Hong Kong Inflation Rate Rises to 4-Month High

The annual inflation rate in Hong Kong rose to 1.7% in February 2026 from 1.1% in January, marking the highest reading since late May. Prices rose faster for miscellaneous services (4.9% vs 2.9%), transport (4.3% vs 1.3%) and electricity, gas and water (3.5% vs 3%). On the other hand, inflation slowed for miscellaneous goods (1.8% vs 2.3%) and alcoholic drinks and tobacco (1.8% vs 2.7%) and steadied for housing (1.1% vs 1.1%). Prices continued to fall for clothing and footwear (-3.4% vs -2.3%) and durable goods (-2.6% vs -2.8%). The larger increase was mainly due to charges for package tours and inbound and outbound transport fares during the Chinese New Year, coupled with the fact that the Chinese New Year fell in January last year, resulting in a relatively lower base of comparison in February 2025. On a monthly basis, the CPI grew by 0.5%, up from 0.2% in January. Excluding the government’s one-off relief measures, underlying inflation rose by 1.6%, following a 1% gain in January.

Hong Kong’s annual inflation rate eased to 1.1% in January 2026, down from 1.4% in December. Price growth slowed for housing (1.1% vs 1.6% in December), food (0.5% vs 1%), and transport (1.3% vs 4.3%). At the same time, deflation deepened for durable goods (-2.8% vs -2.6%) and clothing and footwear (-2.3% vs -1.7%). In contrast, prices rebounded for electricity, gas and water (3% vs -1.6%), while inflation increased for miscellaneous services (2.9% vs 2.3%), miscellaneous goods (2.3% vs 1.2%), and alcoholic drinks and tobacco (2.7% vs 2%). On a monthly basis, consumer prices edged up 0.2% in January, down from 0.3% in the previous month. Excluding the government’s one-off relief measures, underlying inflation rose 1%, slowing from 1.2% in December.

Hong Kong’s annual inflation rate rose to 1.4% in December 2025, the highest since June 2025 and up from 1.2% in November. The increase was primarily driven by faster price growth in transportation (4.3% vs 3.5%) and miscellaneous services (2.3% vs 1.9%), alongside smaller declines in clothing and footwear (-1.7% vs -4.1%) and durable goods (-2.6% vs -3.3%). Housing costs remained stable, growing 1.6%. Conversely, price growth softened for food (1.0% vs 1.1%), miscellaneous goods (1.2% vs 1.3%), and alcoholic drinks and tobacco (2.0% vs 2.1%), while electricity, gas, and water prices fell further (-1.6% vs -0.5%). On a monthly basis, consumer prices increased 0.3% in December, following a flat reading in November. Excluding the government’s one-off relief measures, the underlying inflation rate edged up to 1.2%, compared with 1.0% in November.