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The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) announced today (June 20) the composite interest rate at the end of May 2025 (Note 1).
      
     The composite interest rate, which is a measure of the average cost of funds of banks, decreased by 41 basis points to 1.61 per cent at the end of May 2025, from 2.02 per cent at the end of April 2025 (see Chart 1 in the Annex). The decrease in composite interest rate reflected the decreases in the weighted funding cost for deposits and interbank funds during the month (see Chart 2 in the Annex) (Note 2).
      
     The historical data of the composite interest rate from the end of the fourth quarter of 2003 to the end of May 2025 are available in the Monthly Statistical Bulletin on the HKMA website (www.hkma.gov.hk).

Note 1: The composite interest rate is a weighted average interest rate of all Hong Kong dollar interest-rate-sensitive liabilities, which include deposits from customers, amounts due to banks, negotiable certificates of deposit and other debt instruments, and all other liabilities that do not involve any formal payment of interest but the values of which are sensitive to interest rate movements (such as Hong Kong dollar non-interest bearing demand deposits) on the books of banks. Data from retail banks, which account for about 90 per cent of the total customers’ deposits in the banking sector, are used in the calculation. It should be noted that the composite interest rate represents only average interest expenses. There are various other costs involved in the making of a loan, such as operating costs (e.g. staff and rental expenses), credit cost and hedging cost, which are not covered by the composite interest rate.

Note 2: Since June 2019, the composite interest rate and weighted deposit rate have been calculated based on the new local “Interest rate risk in the banking book” (IRRBB) framework. As such, these figures are not strictly comparable with those of previous months. read more

     Hong Kong Customs today (June 20) arrested a male owner of a wedding decoration company suspected of engaging in wrongly accepting payments in the sale of services, in contravention of the Trade Descriptions Ordinance (TDO).

     Customs earlier received information alleging that a wedding decoration company in San Po Kong failed to provide wedding decoration services purchased by customers. Customs officers immediately conducted an investigation and found that customers who had purchased prepaid wedding decoration services were unable to use the services after the company suddenly suspended the business earlier. The company also failed to arrange refunds to the customers.

     After a follow-up investigation, Customs officers today conducted an enforcement operation and arrested a 40-year-old male owner of the wedding decoration company connected with the case. 

     An investigation is ongoing, and the arrested man has been released on bail pending further investigation.

     Customs has been paying close attention to the incident and called on members of the public affected by the incident to provide information. As of 3pm today, Customs had received 166 complaints, involving wedding decoration contracts amounting to about $1.9 million.

     Customs reminds traders to comply with the requirements of the TDO. Consumers are also reminded to procure services at reputable shops and think prudently before making decisions for consumption with prepayment.

     Under the TDO, any trader commits an offence if, at the time of acceptance of payment, the trader intends not to supply the product or intends to supply a materially different product, or there are no reasonable grounds for believing that the trader will be able to supply the product within a specified or reasonable period. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.

     Members of the public may report any suspected violations of the TDO to Customs’ 24-hour hotline 182 80 80 or its dedicated crime-reporting email account (crimereport@customs.gov.hk), or by filling in an online form (eform.cefs.gov.hk/form/ced002). read more

     â€‹A 37-year-old man was sentenced to nine months’ imprisonment at the Tuen Mun Magistrates’ Courts today (June 20) for engaging in illicit cigarette distribution activities, in contravention of the Dutiable Commodities Ordinance (DCO).

     During an anti-illicit cigarette operation conducted in Po Tin Estate, Tuen Mun, on April 22, Customs officers arrested a man, aged 37 and claiming to be unemployed, for engaging in illicit cigarette distribution activities, and seized about 23 000 illicit cigarettes from his private vehicle. The vehicle was also detained.

     During another anti-illicit cigarette operation conducted in Tin Ching Estate, Tin Shui Wai, yesterday afternoon (June 19), Customs officers spotted the same man, who was on bail, suspected of distributing illicit cigarettes. Upon interception, 19 000 illicit cigarettes were found inside another private vehicle of the man. Customs officers then arrested the man again and seized the private vehicle.

     A total of about 42 000 illicit cigarettes were seized, with an estimated market value of about $189,000 and a duty potential of about $139,000, from the two cases.

     Customs welcomes the sentence. The custodial sentence has imposed a considerable deterrent effect and reflects the seriousness of the offences. Customs reminds members of the public that under the DCO, anyone involved in dealing with, possession of, selling or buying illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $1 million and imprisonment for two years.

     Members of the public may report any suspected illicit cigarette activities to Customs’ 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

  

     A spokesman for the Financial Services and the Treasury Bureau announced today (June 20) that the Financial Secretary has reappointed Ms Miranda Kwok Pui-fong and Mr Sun Yu as members of the Risk Management Committee (RMC) of the Ho… read more

     The Census and Statistics Department (C&SD) released today (June 20) the Consumer Price Index (CPI) figures for May 2025. According to the Composite CPI, overall consumer prices rose by 1.9% in May 2025 over the same month a year earlier, slightly smaller than the corresponding increase (2.0%) in April 2025. Netting out the effects of all Government’s one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in May 2025 was 1.0%, also smaller than that in April 2025 (1.3%). The smaller increase was mainly due to the decreases in inbound and outbound transport fares as well as the charges for package tours.

     On a seasonally adjusted basis, the average monthly rate of change in the Composite CPI for the 3-month period ending May 2025 was -0.1%, the same as that for the 3-month period ending April 2025. Netting out the effects of all Government’s one-off relief measures, the corresponding rates of change were 0.1% and 0.0%.   

     Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 2.8%, 1.6% and 1.2% respectively in May 2025, as compared to 2.6%, 1.8% and 1.6% respectively in April 2025. Netting out the effects of all Government’s one-off relief measures, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 1.3%, 0.8% and 0.8% respectively in May 2025, as compared to 1.4%, 1.1% and 1.2% respectively in April 2025.   

     On a seasonally adjusted basis, for the 3-month period ending May 2025, the average monthly rates of change in the CPI(A), CPI(B) and CPI(C) were all -0.1%. The corresponding rates of change for the 3-month period ending April 2025 were -0.2%, -0.1% and -0.1% respectively. Netting out the effects of all Government’s one-off relief measures, the average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) for the 3-month period ending May 2025 were 0.1%, 0.1% and 0.0% respectively, and the corresponding rates of change for the 3-month period ending April 2025 were all 0.0%.

     Amongst the various components of the Composite CPI, year-on-year increases in prices were recorded in May 2025 for electricity, gas and water (19.7%), housing (2.9%), transport (2.2%), miscellaneous services (1.4%), meals out and takeaway food (1.3%), miscellaneous goods (0.5%), and alcoholic drinks and tobacco (0.5%).   

     On the other hand, year-on-year decreases in the components of the Composite CPI were recorded in May 2025 for clothing and footwear (-5.3%), durable goods (-2.3%), and basic food (-1.4%).   

     Taking the first 5 months of 2025 together, the Composite CPI rose by 1.7% over a year earlier. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.4%, 1.5% and 1.3% respectively. The corresponding increases after netting out the effects of all Government’s one-off relief measures were 1.2%, 1.5%, 1.1% and 1.0% respectively.   

     For the 3 months ending May 2025, the Composite CPI rose by 1.8% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 2.4%, 1.6% and 1.3% respectively. The corresponding increases after netting out the effects of all Government’s one-off relief measures were 1.1%, 1.4%, 1.0% and 0.9% respectively.   

     For the 12 months ending May 2025, the Composite CPI was on average 1.8% higher than that in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.3%, 1.6% and 1.4% respectively. The corresponding increases after netting out the effects of all Government’s one-off relief measures were 1.2%, 1.3%, 1.1% and 1.1% respectively. 

Commentary

     A Government spokesman said that consumer price inflation stayed modest in recent months. The underlying Composite CPI increased by 1.0% over a year earlier in May, giving an increase of 1.2% in the first five months of the year. Price pressures on various major components were contained in general.

     Looking ahead, overall inflation should remain modest in the near term. Pressures from domestic costs and external prices should stay broadly in check. The Government will monitor the situation closely.

Further information

     The CPIs and year-on-year rates of change at section level for May 2025 are shown in Table 1. The time series on the year-on-year rates of change in the CPIs before and after netting out the effects of all Government’s one-off relief measures are shown in Table 2. For discerning the latest trend in consumer prices, it is also useful to look at the changes in the seasonally adjusted CPIs. The time series on the average monthly rates of change during the latest 3 months for the seasonally adjusted CPIs are shown in Table 3. The rates of change in the original and the seasonally adjusted Composite CPI and the underlying inflation rate are presented graphically in Chart 1.

     More detailed statistics are given in the “Monthly Report on the Consumer Price Index”. Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1060001&scode=270).

     For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD (Tel: 3903 7374 or email: cpi@censtatd.gov.hk). read more