Hong Kong's Consumer Prices Rise 1.1% in January 2026, Showing Mild Inflation Trends

Consumer Price Indices for January 2026

The Census and Statistics Department (C&SD) released today (February 25) the Consumer Price Index (CPI) figures for January 2026. According to the Composite CPI, overall consumer prices rose by 1.1% in January 2026 over the same month a year earlier, smaller than the corresponding increase (1.4%) in December 2025. 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 January 2026 was 1.0%, also smaller than that in December 2025 (1.2%). The smaller increases in January 2026 were mainly due to the high base of comparison stemming from the Chinese New Year falling in January last year, in particular inbound and outbound transport fares.

On a seasonally adjusted basis, the average monthly rate of increase in the Composite CPI for the 3-month period ending January 2026 was 0.2%, the same as that for the 3-month period ending December 2025. Netting out the effects of all Government's one-off relief measures, the corresponding rates of increase were both 0.2%.

Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 1.3%, 1.2% and 0.9% respectively in January 2026, as compared to 1.5%, 1.3% and 1.4% respectively in December 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 1.0%, 1.0% and 0.9% respectively in January 2026, as compared to 1.0%, 1.2% and 1.4% respectively in December 2025.

On a seasonally adjusted basis, for the 3-month period ending January 2026, the average monthly rates of increase in the CPI(A), CPI(B) and CPI(C) were 0.3%, 0.2% and 0.2% respectively. The corresponding rates of increase for the 3-month period ending December 2025 were 0.1%, 0.2% and 0.3% respectively. Netting out the effects of all Government's one-off relief measures, the average monthly rates of increase in the seasonally adjusted CPI(A), CPI(B) and CPI(C) for the 3-month period ending January 2026 were all 0.2%, and the corresponding rates of increase for the 3-month period ending December 2025 were 0.1%, 0.2% and 0.3% respectively.

Amongst the various components of the Composite CPI, year-on-year increases in prices were recorded in January 2026 for electricity, gas and water (3.0%), miscellaneous services (2.9%), alcoholic drinks and tobacco (2.7%), miscellaneous goods (2.3%), transport (1.3%), housing (1.1%), and meals out and takeaway food (1.0%).

On the other hand, year-on-year decreases in the components of the Composite CPI were recorded in January 2026 for durable goods (-2.8%), clothing and footwear (-2.3%), and basic food (-0.3%).

For the 3 months ending January 2026, the Composite CPI rose by 1.3% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 1.4%, 1.2% and 1.2% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.1%, 1.0%, 1.1% and 1.2% respectively.

For the 12 months ending January 2026, the Composite CPI on average rose by 1.4% over the same period a year earlier. The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.8%, 1.2% and 1.0% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.1%, 1.3%, 1.0% and 0.9% respectively.

Commentary

A Government spokesman said that consumer price inflation remained mild in January 2026, with the underlying Composite CPI increased by 1.0% over a year earlier. The deceleration from the preceding month mainly reflected the high base of comparison last year when the Chinese New Year fell in late January in 2025 but in mid-February this year. Price pressures on various major components remained largely contained in general.

Looking ahead, external price pressures should largely stay moderate, while domestic costs may rise somewhat as the Hong Kong economy continues to grow. Nevertheless, overall inflation should stay mild in the near term.

Further information

The CPIs and year-on-year rates of change at section level for January 2026 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).

The Census and Statistics Department (C&SD), Photo source: reference image

Responses from University Grants Committee on 2026-27 Budget

The following is issued on behalf of the University Grants Committee:

The 2026-27 Budget outlines financial measures related to higher education, including earmarking $10 billion for providing loans to University Grants Committee (UGC)-funded universities and universities of applied sciences for campus development in the Northern Metropolis University Town, as well as supporting on a matching basis, the Hong Kong University of Science and Technology in developing the third medical school.

The chairman of the UGC, Mr Tim Lui, said yesterday (February 25), "The UGC supported relevant measures. The Northern Metropolis University Town and the third medical school would not only provide development room for the whole post-secondary education sector to expand capacity and enhance quality, but would also serve as a key engine to advance the deeply integrated development of Hong Kong's academic excellence and industry. The UGC Secretariat will continue to support relevant work."

At the same time, with the advent of artificial intelligence, innovative and breakthrough technology in the new era, the UGC-funded universities are utilising resources effectively during the 2025-28 triennium, and introduced 27 undergraduate programmes relevant to STEAM (science, technology, engineering, arts and mathematics). The new programmes would foster innovation and technology (I&T), nurture more high calibre talent to support Hong Kong's development into an international I&T hub, and inject impetus into future development.

He added, "The UGC also appreciates the Hong Kong Special Administrative Region Government's strong support to promote internationalisation of higher education, including the establishment of the Task Force on Study in Hong Kong and the organisation of 'Study in Hong Kong' Week. The Asia-Pacific Association for International Education 2026 Conference and Exhibition, currently underway, has received a very encouraging and overwhelming audience, attracting over 3 200 global education experts from more than 70 countries and regions. As a hub for attracting global talent and facilitating academic exchange, Hong Kong's international reputation and appeal would be further enhanced. The UGC will continue to work closely with each university to deepen international partnership, and will further enrich Hong Kong's diverse and vibrant higher education environment."

Source: AI-found images