Consumer Prices Rise 1.4% Year-on-Year in June 2025, Underlying Inflation Stable at 1.0%.

Consumer Price Indices for June 2025

The Census and Statistics Department (C&SD) released today (July 21) the Consumer Price Index (CPI) figures for June 2025. According to the Composite CPI, overall consumer prices rose by 1.4% in June 2025 over the same month a year earlier, smaller than the corresponding increase (1.9%) in May 2025. The smaller increase in June 2025 was mainly due to the decrease in the Government's provision of electricity charges subsidy in June 2024 compared with May 2024. Netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in June 2025 was 1.0%, the same as that in May 2025.

On a seasonally adjusted basis, the average monthly rate of change in the Composite CPI for the 3-month period ending June 2025 was 0.0%, and that for the 3-month period ending May 2025 was -0.1%. Netting out the effects of all Government's one-off relief measures, the corresponding rates of change were both 0.1%.

Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 2.1%, 1.3% and 0.9% respectively in June 2025, as compared to 2.8%, 1.6% and 1.2% respectively in May 2025. Netting out the effects of all Government's one-off relief measures, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 1.5%, 0.9% and 0.7% respectively in June 2025, as compared to 1.3%, 0.8% and 0.8% respectively in May 2025.

On a seasonally adjusted basis, for the 3-month period ending June 2025, the average monthly rates of change in the CPI(A), CPI(B) and CPI(C) were all 0.0%. The corresponding rates of change for the 3-month period ending May 2025 were all -0.1%. Netting out the effects of all Government's one-off relief measures, the average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) for the 3-month period ending June 2025 were 0.2%, 0.1% and 0.0% respectively, and the corresponding rates of change for the 3-month period ending May 2025 were 0.1%, 0.1% and 0.0% respectively.

Amongst the various components of the Composite CPI, year-on-year increases in prices were recorded in June 2025 for housing (2.8%), transport (1.9%), electricity, gas and water (1.6%), alcoholic drinks and tobacco (1.4%), meals out and takeaway food (1.4%), miscellaneous goods (1.3%), and miscellaneous services (1.0%).

On the other hand, year-on-year decreases in the components of the Composite CPI were recorded in June 2025 for clothing and footwear (-4.1%), durable goods (-2.5%), and basic food (-0.4%).

For the first half of 2025 as a whole, the Composite CPI rose by 1.7% over a year earlier. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.3%, 1.5% and 1.2% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.2%, 1.5%, 1.0% and 1.0% respectively.

In the second quarter of 2025, the Composite CPI rose by 1.8% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 2.4%, 1.6% and 1.3% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.1%, 1.4%, 1.0% and 0.9% respectively.

For the 12 months ending June 2025, the Composite CPI was on average 1.8% higher than that in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.3%, 1.6% and 1.4% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.2%, 1.4%, 1.1% and 1.0% respectively.

Commentary

A Government spokesman said that consumer price inflation stayed modest in June. The underlying Composite CPI increased by 1.0% over a year earlier, same as the preceding month. Price pressures on various major components were contained in general.

Looking ahead, overall inflation should remain modest in the near term, as pressures from domestic costs and external prices should stay broadly in check. The Government will monitor the situation closely.

Further information

The CPIs and year-on-year rates of change at section level for June 2025 are shown in Table 1. The time series on the year-on-year rates of change in the CPIs before and after netting out the effects of all Government's one-off relief measures are shown in Table 2. For discerning the latest trend in consumer prices, it is also useful to look at the changes in the seasonally adjusted CPIs. The time series on the average monthly rates of change during the latest 3 months for the seasonally adjusted CPIs are shown in Table 3. The rates of change in the original and the seasonally adjusted Composite CPI and the underlying inflation rate are presented graphically in Chart 1.

More detailed statistics are given in the "Monthly Report on the Consumer Price Index". Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1060001&scode=270).

For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD (Tel: 3903 7374 or email: cpi@censtatd.gov.hk).

Source: AI-found images

HKSAR Government responds to World Bank Group Business Ready 2025 Report

The World Bank Group published the second pilot Business Ready 2025 Report (Report) on December 29. The Report analyses the overall performance of economies under three pillars (Note 1) involving ten topics (Note 2) and assesses their business environment accordingly. The number of economies assessed is expanded from 50 economies last year to over 100 this year. According to the Report, among the three pillars, Hong Kong remains in the top 20 in "Operational Efficiency" and in the second quintile in "Regulatory Framework" and "Public Services".

"Some assessment results of the Report, such as those relating to 'International Trade', 'Financial Services', 'Dispute Resolution' etc., differ from the rankings and highly positive evaluations bestowed upon Hong Kong by many other international organisations. We note that the assessment methodology of the Report may result in an outdated and unfair comparison. Taking the pillar of 'Operational Efficiency' as an example, some of the data used to assess Hong Kong were collected shortly after the pandemic in 2023, while some of the data used for other economies' assessment were collected in 2024," a Hong Kong Special Administrative Region (HKSAR) Government spokesman said.

"This year's report is still under the pilot phase and may have room for improvement on the assessment methodology and data comparability. The HKSAR Government will maintain communication with the World Bank Group to fully explain Hong Kong's business environment and relevant policy measures. The HKSAR Government will also raise constructive feedback, striving to optimise the compilation of the Report," the spokesman said.

Note 1: The three pillars include "Regulatory Framework", "Public Services" and "Operational Efficiency"

Note 2: The ten topics are "Business Entry", "Business Location", "Utility Services", "Labor", "Financial Services", "International Trade", "Taxation", "Dispute Resolution", "Market Competition" and "Business Insolvency".

Source: AI-found images