Hong Kong’s overall inflation rose 2 percent last month, slightly faster than estimates, official data showed.
The increase in the consumer price index was larger than the expected rise of 1.9 percent and a 1.7 percent expansion in April.
Netting out the effects of all the government's one-off relief measures, the underlying inflation rate grew by 1.9 percent in May, also bigger than a 1.6 percent growth in April, the Census and Statistics Department said.
The larger increase in May was mainly due to the accelerated increases in inbound and outbound transport fares and the charges for package holidays, as well as the increases in the charges for health services, the department said.
Among the various components, a 6.6 percent rise in prices was recorded for electricity, gas, and water, followed by a 5.1 percent gain in transport.
On the other hand, the costs for durable goods fell by 1.2 percent last month.
While the recent de-escalation of geopolitical tensions in the Middle East has contributed to a decline in international oil prices, the earlier surge in oil prices will continue feeding through to fuel-related components of consumer prices in the coming months, a government spokesman said.
Meanwhile, prices in other areas remain largely stable, which should help keep overall inflation moderate, he added.
The government earlier raised the forecasts for the underlying and headline consumer price inflation rates for 2026 to 2.5 percent and 2.6 percent, respectively, up from 1.7 percent and 1.8 percent it previously projected.
