Hong Kong’s annual inflation rate rose to 2.0% in May 2026, up from 1.7% in April, reaching its highest level since April of the previous year. Price gains accelerated in electricity, gas and water (6.6% vs 5.5%) and in transport (5.1% vs 4.3%). Inflation also picked up for miscellaneous services (5.1% vs 4.5%) and miscellaneous goods (2.9% vs 2.6%).
Food inflation held steady at 0.7%, while housing inflation inched up to 1.1% from 1.0%. Prices for alcoholic drinks and tobacco increased by 2.5%, compared with 2.3% previously. Deflation in durable goods eased, with prices falling 1.2% year-on-year, compared with a 1.9% decline in the prior month.
On a monthly basis, consumer prices were unchanged in May, following a 0.1% decline in April. Authorities noted that although easing geopolitical tensions in the Middle East have recently driven down oil prices, earlier spikes in energy costs are still expected to pass through to fuel-related components in the coming months.
