Inflation rises to 1.9% in September on higher transport, holiday costs

Electricity, gas, and water prices climbed by 12.9% year on year.

Hong Kong’s consumer prices rose by 1.9% year on year in September 2026, up from 1.7% in August, according to the Census and Statistics Department.

Underlying inflation, which excludes the effects of the government’s one-off relief measures, accelerated to 2.1% from 1.9%.

The increase was mainly driven by faster rises in inbound and outbound transport fares and package holiday charges.

Electricity, gas, and water prices recorded the largest increase amongst major CPI components, rising by 12.9% year on year. Transport costs climbed by 5.2%, whilst miscellaneous services rose by 5.3%.

Miscellaneous goods prices climbed by 2.1%, followed by durable goods at 1.1%, meals out and takeaway food at 1.0%, clothing and footwear at 0.3%, and housing at 0.2%.

In contrast, alcoholic drinks and tobacco prices fell by 0.4%, while basic food prices declined by 0.2%.

The seasonally adjusted Composite CPI rose by an average of 0.2% per month in the three months to September 2026, unchanged from the three months to August. Excluding the effects of the Government’s one-off relief measures, the rate also held steady at 0.2%.

Looking ahead, the government expects inflation to face upward pressure from elevated international oil prices amid ongoing geopolitical tensions in the Middle East. However, price pressures in other areas are expected to remain contained, keeping overall inflation moderate.