Inflation in March accelerated in Hong Kong as soaring global oil prices triggered by the US-Israeli attacks on Iran and the ongoing Strait of Hormuz lockdown weighed on fuel-related items, though the cost of other products were broadly kept in check.

Census and Statistics Department data released on Thursday showed the composite consumer price index, which tracks overall consumer prices, increased by 1.7 percent year on year in March.

While that rate stood unchanged from the level seen in February, it was larger than the 1.5 percent rise registered for the first two months of the year, which authorities believe is more accurate as it helped smooth out the effects caused by the Chinese New Year holidays falling on different months in 2026 and 2025.

Underlying inflation, meanwhile, which nets out the effects of all one-off government relief measures, jumped 1.6 percent year on year, making it higher than the average 1.3 percent rise seen during January and February.

A government's spokesman noted that Hong Kong's consumer price inflation "accelerated somewhat but stayed moderate" last month, adding the rise was mainly due to the faster price increases for fuel-related items.

"Looking ahead, elevated international oil prices will likely continue to feed through to the relevant components in consumer prices gradually in the near term, with the final impacts hinging on the evolving situation in the Middle East," he said.

"Yet, as price pressures from other sources generally stay contained, this should help rein in the potential upward pressure on overall inflation."

The spokesman also said the government had introduced short-term targeted measures to ease the effects of the fuel price spikes.

Since early April, officials have rolled out a two-month subsidy of HK$3 per litre of diesel for commercial vehicles and vessels and reduced tunnel tolls by 50 percent for all commercial vehicles.

By categories, the costs of transport, electricity, gas and water rose by 3.9 percent year on year in March, while prices fell by 2.2 percent for durable goods and 0.7 percent for clothing and footwear.



Edited by Tony Sabine