Inflation eases to 1.1% in January as holiday surge fades

Underlying inflation also slowed to 1.0% in the same month.

The Composite Consumer Price Index (CPI) rose 1.1% year on year in January 2026, easing from December 2025, according to data from the Census and Statistics Department.

The underlying inflation rate—excluding government relief measures—was 1.0% in January 2026, compared with 1.2% in December 2025.

The department attributed the smaller increase to a high base of comparison in January 2025, when the Chinese New Year fell, affecting inbound and outbound transport fares.

Prices for electricity, gas and water rose 3.0% in January 2026. Other increases were recorded in miscellaneous services (2.9%), alcoholic drinks and tobacco (2.7%), miscellaneous goods (2.3%), transport (1.3%), housing (1.1%), and meals out and takeaway food (1.0%).

Price declines were seen in durable goods (2.8%), clothing and footwear (2.3%), and basic food (0.3%).

The CPI(A), CPI(B) and CPI(C) sub-indices rose 1.3%, 1.2% and 0.9%, respectively. The corresponding underlying rates were 1.0% for CPI(A), 1.0% for CPI(B), and 0.9% for CPI(C).

On a seasonally adjusted basis, the average monthly rate of increase in the Composite CPI for the three-month period ending January 2026 was 0.2%, unchanged from the three-month period ending December 2025.

For the 12 months ending January 2026, the Composite CPI rose by an average of 1.4% compared with the previous year.

Government projections indicate moderate external price pressures, whilst domestic costs may edge up alongside growth in the Hong Kong economy. Inflation is expected to remain mild in the near term.