HK inflation up 2% in January

Price hikes were recorded in alcoholic drinks and tobacco.

Consumer prices in Hong Kong increased by 2% year-on-year in January, up from 1.4% in December, the Census & Statistics Department reported.

Excluding one-off government relief measures, underlying inflation reached 1.6%, also higher than in December.

Price increases were observed across several categories, including alcoholic beverages and tobacco, electricity, gas and water, transport, miscellaneous services, dining out and takeaway food, housing, miscellaneous goods, and basic food. In contrast, year-on-year price declines were recorded in clothing and footwear, as well as durable goods.

The government described inflation as modest, with mild food price increases and a moderate rise in energy costs.

Given that the Lunar New Year fell in different months in 2024 and 2025, the government said that a more accurate assessment of inflation trends would be made after reviewing the combined figures for January and February.

Looking ahead, the hovernment expects overall inflation to stay moderate in the near term. While domestic costs may face some upward pressure, external price pressures are likely to remain contained. However, it cautioned that geopolitical tensions and trade conflicts could introduce uncertainties.