FX.co ★ Hong Kong Inflation Accelerates to 3-Month High in April

In April 2025, Hong Kong experienced an increase in its annual inflation rate to 2.0%, up from 1.4% in March, reaching its highest point since January. This rise was primarily due to a reduction in the upper limit of rates concessions compared to April of the previous year. Additional contributors to the inflation uptick were sharper price escalations in sectors such as housing, which climbed to 2.8% from March's 1.7%, transport, which increased to 3.8% from 1.7%, miscellaneous services, which rose to 2.1% from 1.0%, and food, which slightly grew to 0.4% from 0.3%. However, these inflationary forces were somewhat counterbalanced by more significant price reductions in durable goods, which decreased by 1.6% compared to March's 0.5%, and clothing and footwear, which fell by 4.1% against the previous month's 2.8% decline. On a month-to-month comparison, consumer prices marginally declined by 0.1% in April, after remaining unchanged in March.