Hong Kong: CPI increased by 2% year-on-year in June.

The Census and Statistics Department of the Hong Kong SAR (Census and Statistics Department) announced today (July 21) the Consumer Price Index for June 2026. According to the Composite Consumer Price Index, the overall Consumer Price in June 2026 increased by 2.0% compared to the same month a year ago, the same as the corresponding increase in May 2026. Excluding the impact of all one-off relief measures by the government, the year-on-year increase in the Composite Consumer Price Index in June 2026 (i.e. the underlying inflation rate) was 1.9%, also the same as the corresponding increase in May 2026. The seasonally adjusted Composite Consumer Price Index showed an average monthly increase of 0.1% in the three months ending June 2026, the same as the corresponding increase in the three months ending May 2026. Excluding the impact of all one-off relief measures by the government, the corresponding increases were 0.2% and 0.3%. From the analysis of subdivided indexes, the Consumer Price Index for Category A, Category B, and Category C increased by 1.8%, 2.1%, and 2.2% respectively in June 2026 compared to the same month in 2025, the same as the corresponding increases in May 2026. Excluding the impact of all one-off relief measures by the government, the year-on-year increases for Category A, Category B, and Category C were 1.5%, 2.0%, and 2.1%, respectively, in June 2026, also the same as the corresponding increases in May 2026. The seasonally adjusted monthly change rates for Category A, Category B, and Category C Consumer Price Index were 0.0%, 0.1%, and 0.1%, respectively in the three months ending June 2026, while the corresponding change rates for the three months ending May 2026 were 0.0%, 0.2%, and 0.2%. Excluding the impact of all one-off relief measures by the government, the average monthly change rates for the seasonally adjusted Category A, Category B, and Category C Consumer Price Index in the three months ending June 2026 were all 0.2%, while the corresponding change rates for the three months ending May 2026 were 0.3%, 0.3%, and 0.2%. Among the components of the Composite Consumer Price Index, categories that recorded year-on-year increases in prices in June 2026 were electricity, gas, and water (up 9.2%), transportation (up 5.3%), miscellaneous services (up 5.2%), miscellaneous goods (up 2.3%), housing (up 1.1%), dining out and takeout (up 0.8%), clothing and footwear (up 0.7%), as well as tobacco and alcohol (up 0.1%). On the other hand, categories that recorded year-on-year declines in prices in June 2026 were durable goods (down 1.1%) and basic food (down 0.5%). For the first half of 2026, the Composite Consumer Price Index increased by 1.7% compared to the same period a year ago, with Category A, Category B, and Category C Consumer Price Index increasing by 1.6%, 1.8%, and 1.8% respectively. Excluding the impact of all one-off relief measures by the government, the corresponding increases were 1.6%, 1.3%, 1.7%, and 1.7%. In the second quarter of 2026, the Composite Consumer Price Index increased by 1.9% compared to the same period a year ago, with Category A, Category B, and Category C Consumer Price Index increasing by 1.7%, 2.0%, and 2.0% respectively. Excluding the impact of all one-off relief measures by the government, the corresponding increases were 1.7%, 1.5%, 1.9%, and 2.0%. For the twelve months ending June 2026, the Composite Consumer Price Index increased by an average of 1.5% compared to the same period a year ago, with Category A, Category B, and Category C Consumer Price Index increasing by 1.5%, 1.4%, and 1.4% respectively. Excluding the impact of all one-off relief measures by the government, the corresponding increases were 1.3%, 1.2%, 1.3%, and 1.4%. A spokesperson for the Hong Kong government stated that the basic Composite Consumer Price Index increased by 1.9% year-on-year in June, the same as last month. The price increase of fuel-related items continued to accelerate, but the price pressures of other major components were relatively moderate, offsetting some of the increases. Looking ahead, due to the continued transmission of the sharp rise in international oil prices earlier on, consumer price inflation is expected to increase in the coming months. The recent retreat of international oil prices from their highs may bring some relief, however, the escalating tensions in the Middle East need to be closely monitored. At the same time, price pressures in other categories are generally under control and should help keep overall inflation moderate.