Hong Kong Inflation Hits 4-Year Low

Hong Kong’s annual inflation rate eased to 1.7% in July 2026, down from 2% in each of the previous two months. Inflation softened for housing, which eased sharply to 0.1% from 1.1%, and transport, which slowed to 5% from 5.3%. Additional downward pressure came from durable goods, whose prices fell 0.2% after dropping 1.1%, while inflation for clothing and footwear eased to 0.6% from 0.7%. In contrast, inflation rose for utilities (10.8% vs 9.2% in June) and overall food (0.5% vs 0.3%). The underlying composite CPI was unchanged at 1.9%, as inflation for fuel-related items stayed high while price pressures on other components were generally contained. On a monthly basis, consumer prices edged up 0.2%, following two consecutive months of flat readings. Looking ahead, authorities expect the continued feed-through of higher global oil prices on fuel-related components to pose upward pressure on inflation.

The annual inflation rate in Hong Kong stood at 2.0% in June 2026, unchanged from the prior month and remaining the highest level since April last year. Price growth accelerated for electricity, gas and water (9.2% vs. 6.6% in May), transport (5.3% vs. 5.1%), and miscellaneous services (5.2% vs. 5.1%). In contrast, inflation eased for food (0.3% vs. 0.7%), alcoholic drinks and tobacco (0.1% vs. 2.5%), clothing and footwear (0.7% vs. 1.0%), and miscellaneous goods (2.3% vs. 2.9%). Meanwhile, housing inflation was unchanged at 1.1%, while prices of durable goods continued to decline, though at a slightly slower pace (-1.1% vs. -1.2%). On a monthly basis, consumer prices were unchanged for a second consecutive month in June 2026. Authorities noted that while price increases for fuel-related items continued to accelerate, price pressures on other major components were relatively mild, offsetting some of the increases.

The annual inflation rate in Hong Kong rose to 2.0% in May 2026, from a 1.7% increase in the previous month and marking the highest reading since April last year. Price growth accelerated in electricity, gas and water (6.6% vs 5.5%) and transport (5.1% vs 4.3%), while increases were also seen in miscellaneous services (5.1% vs 4.5%) and miscellaneous goods (2.9% vs 2.6%). Food inflation was unchanged at 0.7%, while housing edged up slightly to 1.1% from 1.0%. Alcoholic drinks and tobacco rose to 2.5% from 2.3%. Durable goods deflation moderated, easing to -1.2% from -1.9%. On a monthly basis, consumer prices were flat in May, following a 0.1% decline in April. Authorities noted that although easing geopolitical tensions in the Middle East have pushed down recent oil prices, earlier spikes in energy costs will continue to feed through fuel-related components in the coming months.