FX.co ★ Hong Kong Inflation Slows to 1.4% in June

Hong Kong's annual inflation rate decelerated to 1.4% in June 2025, down from 1.9% in May, marking the slowest growth rate observed in the past three months. This easing of inflation was mainly attributed to reduced price increases in several sectors: housing rose by 2.8% compared to 2.9% in May, transport costs increased by 1.9% compared to 2.2%, miscellaneous services grew by 1.0% in contrast to 1.4%, and prices for electricity, gas, and water saw a significant reduction to 1.6% from 19.7%. Additionally, there was a more pronounced decrease in the prices of durable goods, declining by 2.5% compared to a 2.3% drop previously. This overall downward trend in inflation was somewhat counterbalanced by quicker price rises in food, which increased by 0.7% from 0.4%, alcoholic drinks and tobacco up to 1.4% from 0.5%, and miscellaneous goods rising to 1.3% from 0.5%. Meanwhile, the rate of decline in clothing and footwear prices lessened, falling by 4.1% compared to a previous 5.3% drop. On a month-over-month comparison, consumer prices remained stable in June, after a decline of 0.3% in May.