Inflationary pressures rise in Hong Kong and Taiwan

Inflationary pressures are rising in Hong Kong and Taiwan, according to recent economic data.

In Hong Kong, the Economic Analysis and Business Facilitation Unit has upwardly revised its 2026 inflation forecasts. The projected overall consumer price inflation has been raised to 2.6%, up from the previous estimate of 1.8%. The basic consumer price inflation forecast was also increased from 1.7% to 2.5%. These adjustments reflect rising local cost pressures and external factors such as international oil prices.

In Taiwan, the Directorate-General of Statistics reported that the August Consumer Price Index (CPI) rose by 2.04% year-on-year, marking the fourth consecutive month that inflation has exceeded the 2% warning threshold. Key drivers include increased costs for fuel, entertainment services, dining out, and household management. While vegetable prices saw a significant decrease due to high base effects from the previous year, core CPI (excluding fruit, vegetables, and energy) rose by 2.30%.