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The annual inflation rate in Hong Kong edged down to 1.9% in May 2025 from a three-month high of 2% in the previous month. Prices moderated for transport (2.2% vs 3.8% in April), miscellaneous goods (0.5% vs 1%) and miscellaneous services (1.4% vs 2.1%). In addition, deflation worsened for clothing and footwear (-5.3% vs -4.1%) and durable goods (-2.3% vs -1.6%). Meanwhile, costs accelerated for housing (2.9% vs 2.8%), electricity, gas, and water (19.7% vs 13.2%), and alcoholic drinks and tobacco (0.5% vs 0.4%). At the same time, prices were stable for food (0.4%). On a monthly basis, consumer prices fell 0.3% in May 2025 from 0.1% in the previous month.