Hong Kong's May CPI increased by 2.0% year-on-year.

On June 23rd, the Census and Statistics Department of the Hong Kong Special Administrative Region Government published the Consumer Price Index (CPI) for May 2026. According to the Composite CPI, the overall consumer price in May 2026 increased by 2.0% compared to the same month a year ago, which was higher than the corresponding increase in April 2026 (1.7%). Excluding the impact of all one-off relief measures by the government, the year-on-year increase (basic inflation rate) in the Composite CPI for May 2026 was 1.9%, also higher than in April 2026 (1.6%). The increase in the year-on-year rate in May 2026 was mainly due to the faster rise in transportation costs in and out of Hong Kong, package tour expenses, and rising medical and health service costs. The seasonally adjusted Composite CPI had an average monthly change rate of 0.1% for the three months ending in May 2026, compared to a corresponding rate of 0.0% for the three months ending in April 2026. Excluding the impact of all government one-off relief measures, the corresponding change rates were 0.3% and 0.1%. In the analysis of the sub-indices, Classes A, B, and C had year-on-year increases in the Consumer Price Indices of 1.8%, 2.1%, and 2.2% respectively in May 2026, compared to 1.6%, 1.8%, and 1.7% in April 2026. Excluding the impact of all government one-off relief measures, the year-on-year increases in Classes A, B, and C for May 2026 were 1.5%, 2.0%, and 2.1% respectively, compared to 1.4%, 1.7%, and 1.6% in April 2026. The seasonally adjusted Consumer Price Indices for Classes A, B, and C had average monthly change rates of 0.0%, 0.2%, and 0.2% respectively for the three months ending in May 2026, compared to -0.1%, 0.1%, and 0.1% for the three months ending in April 2026. Excluding the impact of all government one-off relief measures, the average monthly change rates for the three classes were 0.3%, 0.3%, and 0.2% for the three months ending in May 2026, compared to 0.1%, 0.2%, and 0.1% for the three months ending in April 2026. Among the components of the Consumer Price Indices in various categories, the categories that recorded year-on-year increases in prices in May 2026 were electricity, gas, and water (up 6.6%), transportation (up 5.1%), miscellaneous services (up 5.1%), miscellaneous items (up 2.9%), tobacco and alcohol (up 2.5%), housing (up 1.1%), clothing and footwear (up 1.0%), dining out and takeaways (up 0.8%), and basic food (up 0.4%). On the other hand, the category that recorded a year-on-year decrease in prices in May 2026 was durable goods (down 1.2%). For the first five months of 2026, the Composite CPI increased by 1.7% compared to the same period a year ago, with corresponding increases of 1.6%, 1.7%, and 1.7% for Classes A, B, and C, respectively. Excluding the impact of all government one-off relief measures, the corresponding increases were 1.5%, 1.3%, 1.6%, and 1.6%. For the three months ending in May 2026, the Composite CPI increased by 1.8% compared to the same period a year ago, with increases of 1.7%, 1.9%, and 1.9% for Classes A, B, and C, respectively. Excluding the impact of all government one-off relief measures, the corresponding increases were 1.7%, 1.4%, 1.8%, and 1.8%. For the twelve months ending in May 2026, the Composite CPI increased by an average of 1.4% compared to the same period a year ago, with corresponding increases of 1.6%, 1.4%, and 1.3% for Classes A, B, and C, respectively. Excluding the impact of all government one-off relief measures, the corresponding increases were 1.3%, 1.2%, 1.2%, and 1.2%. A spokesperson for the Hong Kong government stated that the basic CPI for May rose by 1.9% compared to the same period last year, accelerating from 1.6% in the previous month. Prices of fuel-related items continued to rise, while the price pressure of other major components remained largely under control. Looking ahead, despite recent easing of tensions in the Middle East geopolitics leading to a fall in international oil prices, the earlier sharp rise in oil prices will continue to transmit to consumer prices related to fuel in the coming months. At the same time, as price pressures in other areas remain relatively stable, this should help maintain overall inflation at a moderate level. The government will continue to closely monitor developments.