Hong Kong inflation picks up to 2% in May on transport, health costs

Holiday packages also helped drive prices up.

Hong Kong inflation accelerated to 2.0% in May from 1.7% a month earlier, driven by higher transport fares, package holiday charges and healthcare costs, according to the Census and Statistics Department.

Underlying inflation, which excludes the effects of the government's one-off relief measures, also rose to 1.9% in May from 1.6% in April.

The statistics department said the faster increase was mainly due to accelerated growth in inbound and outbound transport fares, higher package holiday charges, and rising health service costs.

Amongst major spending categories, electricity, gas and water recorded the largest annual increase at 6.6%, followed by transport and miscellaneous services, both up 5.1%.

Prices also rose for miscellaneous goods at 2.9%, alcoholic drinks and tobacco at 2.5%, housing at 1.1%, clothing and footwear at 1.0%, meals out and takeaway food at 0.8%, and basic food at 0.4%.

Durable goods was the only major category to record a decline, falling 1.2% year on year.

On a seasonally adjusted basis, the Composite Consumer Price Index increased at an average monthly rate of 0.1% in the three months ending May, compared with no change in the three months ending April.

For the first five months of 2026, overall consumer prices rose 1.7% compared with the same period a year earlier.

The government noted that price pressures outside fuel-related components remained largely contained.

It added that although easing geopolitical tensions in the Middle East had contributed to lower international oil prices, the earlier rise in oil prices would continue to feed through to fuel-related consumer prices in the coming months.

Prices in other areas are expected to remain largely stable, helping keep overall inflation moderate.