HONG KONG – In a fresh update, Hong Kong has reported that overall consumer prices ticked up by 1.4% year-on-year in June, a slight dip from the 1.9% increase observed in May. This modest rise is shaping the economic landscape of the bustling city.

According to the Census and Statistics Department, the decline in the monthly inflation rate can be attributed to a reduction in the government's electricity subsidy provisions, affecting June 2024 compared to the previous month.

When excluding temporary government relief measures, the underlying inflation rate remains steady at 1.0%, mirroring the figures from the previous month.

No Significant Changes in Inflation Trends

Recent data reveals that for the three-month period ending June 2025, the average monthly change in the underlying inflation rate was a flat 0.0%, compared to a slight decrease of -0.1% for the preceding three-month span. After disregarding the effects of one-off relief measures, both periods recorded a minimal change of 0.1%.

Key Price Movements and Trends

During the first half of 2025, the underlying inflation rate rose by 1.7%, with a 1.8% increase noted in the second quarter. Key areas driving prices up included housing (2.8%), transport (1.9%), and utilities like electricity, gas, and water (1.6%). Meals out and takeaway food also showed notable increases of 1.4%.

Conversely, certain sectors like clothing and footwear experienced a dip, witnessing a significant decrease of -4.1%, along with durable goods (-2.5%) and basic food items (-0.4%).

What Lies Ahead?

A spokesperson from the government emphasized that consumer price inflation remains manageable, with pressures on key components generally contained. He noted expectations that the overall inflation in Hong Kong would continue to be modest in the near future, primarily due to stability in domestic costs and external price influences.

As Hong Kong navigates these economic trends, the city’s ability to maintain low inflation could provide a buffer in the face of global economic uncertainties.