Inflation accelerates 1.4% on higher transport costs

The government signals inflation will stay “modest” despite spike.

Hong Kong’s consumer inflation accelerated to 1.4% year on year in December, as travel and transport costs increased, government data showed. This is also faster than 1.2% seen in November. 

Underlying inflation, which excludes the effects of one-off government relief measures, climbed to 1.2% from 1.0% a month earlier, data from the Census and Statistics Department showed.

On a seasonally adjusted basis, prices increased by an average of 0.2% per month in the three months to December, compared with 0.1% in the previous three-month period.

Inflation was similar across income groups. Lower, middle, and higher-income households rose 1.5%, 1.3% and 1.4% respectively.

Transport recorded the largest annual increase at 4.3%, followed by miscellaneous services at 2.3%, alcoholic drinks and tobacco at 2.0%, housing at 1.6%, miscellaneous goods at 1.2%, meals out and takeaway food at 1.1%, and basic food at 0.7%.

Prices for durable goods (-2.6%), clothing and footwear (-1.7%), and electricity, gas and water (-1.6%) fell.

For the fourth quarter, inflation averaged 1.3%. For 2025 as a whole, inflation stood at 1.4%.

“Looking ahead, overall inflation should stay modest in the near term, as domestic cost and external price pressures are still mild,” a government spokesman said.