Overall consumer prices in Hong Kong rose 2 percent year-on-year in January, up from the 1.4 percent increase recorded in December 2024, the Census and Statistics Department said on Thursday.

The larger increase was attributable to the waiver of the extra public housing rent payable that ended in December, and the increases in inbound and outbound transport fares and basic food prices due to the Chinese New Year, the department said in a statement.

Netting out the effects of one-off relief measures taken by the government of the special administrative region, underlying inflation was 1.6 percent, which was also larger than December’s 1.3 percent, the department added.

Compared with January last year, price increases were recorded in alcoholic drinks and tobacco (up 20.1 percent); electricity, gas and water (13.2 percent); transport (4 percent); miscellaneous services (2.8 percent); meals out and takeaway food (1.7 percent); housing (1.5 percent); miscellaneous goods (0.8 percent); and basic food categories (0.3 percent).

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Meanwhile, year-on-year decreases were recorded for clothing and footwear, and durable goods.

A Hong Kong Special Administrative Region government spokesman said overall inflation should remain moderate in the near term.

Food prices as a whole continued to record mild year-on-year increases while prices of energy-related items picked up further but remained moderate, the spokesman said.  

As the Chinese New Year this year fell on a different month compared to that in 2024, he said it would be more prudent to examine the figures for January and February together, when available, to assess the underlying inflation situation.

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The spokesman said that, as Hong Kong's economy continues to grow, domestic costs may see some upward pressures.

External price pressures should remain contained but uncertainties stemming from geopolitical tensions and trade conflicts warrant attention, he added.