FX.co ★ Hong Kong Inflation Rate Edges Lower

The annual inflation rate in Hong Kong slightly decreased to 1.9% in May 2025, following a three-month peak of 2% in April. There was a noticeable moderation in prices across various sectors: transport costs declined to 2.2% from April's 3.8%, miscellaneous goods fell to 0.5% from 1%, and miscellaneous services decreased to 1.4% from 2.1%. Moreover, deflation intensified in clothing and footwear, dropping to -5.3% from -4.1%, and durable goods declined further to -2.3% from -1.6%. However, expenses related to housing saw a slight uptick to 2.9% from 2.8%, and there was a substantial increase in the costs for electricity, gas, and water, which surged to 19.7% from 13.2%. Likewise, the costs for alcoholic beverages and tobacco inched up to 0.5% from 0.4%. Conversely, food prices remained stable at 0.4%. On a month-on-month basis, consumer prices decreased by 0.3% in May 2025, following a 0.1% rise in April.