Hong Kong: CPI rises 1.4% year-on-year in June

The Hong Kong government's Census and Statistics Department today (July 21) released the Consumer Price Index (CPI) for June 2025. According to the Composite CPI, the overall CPI for June 2025 increased by 1.4% compared to the same month a year ago, which is lower than the corresponding increase in May 2025 (1.9%). The lower increase in June 2025 is mainly due to the reduction in electricity subsidies provided by the government in June compared to May last year. Excluding the impact of all one-off relief measures introduced by the Hong Kong government, the year-on-year increase in the Composite CPI for June 2025 (i.e. the basic inflation rate) is 1.0%, the same as in May 2025. The seasonally adjusted Composite CPI shows an average monthly change rate of 0.0% for the three months ending in June 2025, compared to -0.1% for the three months ending in May 2025. Excluding the impact of all one-off relief measures, the corresponding change rates are both 0.1%. In terms of the sub-indices, the Consumer Price Indices for Class A, B, and C in June 2025 increased by 2.1%, 1.3%, and 0.9% respectively compared to the same period last year, while the corresponding increases in May 2025 were 2.8%, 1.6%, and 1.2%. Excluding the impact of all one-off relief measures, the year-on-year increases for Class A, B, and C in June 2025 were 1.5%, 0.9%, and 0.7% respectively, compared to 1.3%, 0.8%, and 0.8% in May 2025. The seasonally adjusted Consumer Price Indices for Class A, B, and C show an average monthly change rate of 0.0% for the three months ending in June 2025, compared to -0.1% for the three months ending in May 2025. Excluding the impact of all one-off relief measures, the average monthly change rates for the seasonally adjusted Class A, B, and C Consumer Price Indices for the three months ending in June 2025 are 0.2%, 0.1%, and 0.0%, while the corresponding rates for the three months ending in May 2025 are 0.1%, 0.1%, and 0.0%. Among the components of the Composite CPI in June 2025, the categories that recorded year-on-year increases were Housing (up 2.8%), Transport (up 1.9%), Electricity, Gas and Water (up 1.6%), Tobacco and Alcohol (up 1.4%), Eating Out and Takeaway (up 1.4%), Miscellaneous Goods (up 1.3%), and Miscellaneous Services (up 1.0%). On the other hand, the categories that recorded year-on-year decreases in the Composite CPI in June 2025 were Clothing (down 4.1%), Durable Goods (down 2.5%), and Basic Food (down 0.4%). For the first half of 2025, the Composite CPI increased by 1.7% compared to the same period last year, with corresponding increases of 2.3%, 1.5%, and 1.2% for Class A, B, and C Consumer Price Indices. Excluding the impact of all one-off relief measures, the corresponding increases were 1.2%, 1.5%, 1.0%, and 1.0%. In the second quarter of 2025, the Composite CPI increased by 1.8% compared to the same period last year, with corresponding increases of 2.4%, 1.6%, and 1.3% for Class A, B, and C Consumer Price Indices. Excluding the impact of all one-off relief measures, the corresponding increases were 1.1%, 1.4%, 1.0%, and 0.9%. Over the twelve months ending in June 2025, the Composite CPI increased by an average of 1.8% compared to the same period last year, with corresponding increases of 2.3%, 1.6%, and 1.4% for Class A, B, and C Consumer Price Indices. Excluding the impact of all one-off relief measures, the corresponding increases were 1.2%, 1.4%, 1.1%, and 1.0%. A government spokesperson stated that inflation in consumer prices remained mild in June. The basic Composite CPI increased by 1.0% year-on-year, the same as last month. Price pressures for major components are generally under control. Looking ahead, with local costs and external price pressures expected to remain broadly manageable, overall inflation should stay mild in the short term. The government will closely monitor the situation.