Inflation rises to 1.7% in March

Fuel-related costs drove the faster price growth.

Consumer prices rose 1.7% YoY in March 2026, as inflation accelerated from the first two months of the year but remained moderate.

The increase in the Composite Consumer Price Index was higher than the 1.5% average rise in January and February, according to the Census and Statistics Department.

Underlying inflation, which excludes the effects of all government one-off relief measures, rose to 1.6% from the 1.3% average in the first two months.

A government spokesman said the acceleration mainly reflected faster increases in fuel-related prices amid higher international oil prices caused by the Middle East conflict. Price pressures on other components were largely contained.

Miscellaneous services posted the largest price increase at 4.6%, whilst transport and electricity, gas, and water each rose 3.9%. Prices also increased for miscellaneous goods by 2.8%, alcoholic drinks and tobacco by 2.1%, basic food by 1.2%, housing by 1.0%, and meals out and takeaway food by 0.8%.

Prices fell for durable goods by 2.2% and for clothing and footwear by 0.7%. For the first quarter, the Composite CPI rose 1.6% from a year earlier, whilst the underlying increase was 1.4%.

The government said elevated international oil prices will likely continue feeding into consumer prices gradually in the near term, though contained price pressures elsewhere should help limit upward pressure on overall inflation.