In 2018, inflation rose moderately, with the Consumer Price Index (CPI) increasing by 2.4%. This was driven by rising food and housing costs. In 2019, inflation continued to rise, reaching an average of 3.0%, fueled by higher import prices and increased demand in the housing market.
However, in 2020, the COVID-19 pandemic severely impacted Hong Kong’s economy. Consumer demand plummeted, and supply chains were disrupted, leading to deflation in some months. The annual CPI increase dropped to just 0.3%. As the economy began to recover in 2021, inflation rose again, with the CPI increasing by 1.6%.
In 2022, global supply chain issues and rising energy prices continued to affect inflation, which averaged 1.4% for the year. In 2023, inflation rebounded to 2.1% as global economic recovery took hold, but prices for energy and food remained elevated.