Inflation holds at 2% in June

Higher utility and transport costs were partly offset by declines in basic food and durable goods prices.

Overall consumer prices rose 2% YoY in June, unchanged from May, according to the Census and Statistics Department.

Underlying inflation, which excludes the effects of the government’s one-off relief measures, also remained unchanged at 1.9%.

On a seasonally adjusted basis, the Composite Consumer Price Index increased by an average of 0.1% per month during the three months ending June, the same as in the preceding three-month period.

Electricity, gas and water recorded the largest annual price increase at 9.2%, followed by transport at 5.3% and miscellaneous services at 5.2%.

Prices also increased for miscellaneous goods by 2.3%, housing by 1.1%, meals out and takeaway food by 0.8%, clothing and footwear by 0.7%, and alcoholic drinks and tobacco by 0.1%.

Meanwhile, durable goods prices declined 1.1%, whilst basic food prices fell 0.5%.

For the second quarter, the Composite CPI rose 1.9% from the same period in 2025. Inflation averaged 1.7% during the first half of 2026.

The government expects consumer price inflation to increase in the coming months as earlier surges in international oil prices continue to pass through to consumers.

It said the recent moderation in oil prices could provide some relief, although renewed tensions in the Middle East remain a risk. Price pressures in other categories are expected to stay largely contained, keeping overall inflation at a moderate level.