Hong Kong Inflation Hits 13-Month High in May

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.

The annual inflation rate in Hong Kong stood at 1.7% in April 2026, unchanged from the previous two months and remaining at its highest reading since May last year. Price growth mainly picked up for electricity, gas and water (5.5% vs 3.9% in March) and transport (4.3% vs 3.9%). The government spokesman noted that, as global oil prices remain elevated, the pass-through to fuel-related components of consumer prices is expected to persist. Yet price pressures from other fronts remained generally contained, reflected in easing inflation for food (0.7% vs 0.9%), miscellaneous goods (2.6% vs 2.8%), and services (4.5% vs 4.6%), while costs continued to decline for clothing and footwear (-0.3% vs -0.7%) and durable goods (-1.9% vs -2.2%). On a monthly basis, consumer prices fell 0.1%, the first decline since May last year and following a flat reading in the prior period. Excluding the government’s one-off relief measures, underlying annual inflation came in at 1.6%, unchanged from March.

The annual inflation rate in Hong Kong rose to 1.7% in March 2026, unchanged from the previous month and still the highest reading since late May. The acceleration mainly reflected faster increases in fuel-related components during the month, driven by a surge in international oil prices amid the Middle East conflict, while price pressures in other categories remained largely contained. By category, inflation was led by miscellaneous services (4.6% vs 4.9%), electricity, gas and water (3.9% vs 3.5%), transport (3.9% vs 4.3%), and miscellaneous goods (2.8% vs 1.8%). Prices also rose for alcoholic drinks and beverages (2.1% vs 1.8%) and housing (1% vs 1.1%), while declines continued in durable goods (-2.2% vs -2.6%) and clothing and footwear (-0.7% vs -3.4%). On a monthly basis, consumer prices stalled in March, after a 0.5% increase in the preceding period. Excluding the government’s one-off relief measures, underlying inflation rose by 1.6%, the same pace in February.