Hong Kong faces growing scrutiny over its high cost of living, with inflation on the rise and daily expenses-from food to housing-placing increasing pressure on residents and tourists alike.

HONG KONG, CHINA (MERXWIRE) - Hong Kong remains the world's most expensive city for expatriates for the third consecutive year, according to Mercer's 2024 Cost of Living Survey. Coupled with a recent rise in inflation and ongoing reports of sky-high everyday prices, the city's cost of living continues to spark concern among residents and tourists alike.

Located in the southeastern part of China, Hong Kong is a densely built metropolis with a rich colonial history and a pivotal role in global finance and maritime trade. Despite its limited land area, the city accommodates over 7.53 million residents as of mid-2024, according to figures from the Hong Kong Census and Statistics Department. Its population includes major ethnic groups such as Cantonese, Hoklo, and Hakka, along with large numbers of Southeast Asian elites and Chinese diaspora frequently moving between Hong Kong and other regions.

While the population remains dynamic and highly mobile, cost of living pressures are intensifying. The government's latest consumer price data, released in January 2025, shows an overall year-on-year inflation rate of 2.0%, up from 1.4% in December 2024. Stripping away the effects of one-off government relief measures, the underlying inflation rate - or basic inflation - rose from 1.3% in December to 1.6% in January.

This upward trend coincides with rising public concern over everyday expenses. Social media posts by tourists have gone viral, shedding light on the cost of basic meals and goods in the city. A Taiwanese tourist recently shared on Threads about being charged HK$143 (approximately USD 18) for a plate of stir-fried beef noodles in Causeway Bay, calling the price "exorbitant." Meanwhile, Chinese visitors on Xiaohongshu complained about bottled water costing around HK$10 at local convenience stores, prompting one user to post a "Hong Kong Water Buying Guide" to help fellow travelers navigate the city's prices.

Housing, a longstanding concern in Hong Kong, continues to top international unaffordability rankings. A report by public policy consultancy Demographia reveals that Hong Kong remains the least affordable housing market in the world for the 14th consecutive year. The city's median house price is 14.9 times the median household income, meaning it would take nearly 15 years of saving every cent of income - without spending on necessities - to purchase a home.

Tourism figures during China's recent "Golden Week" holiday illustrate Hong Kong's continued appeal, with over 1.1 million tourist arrivals during the five-day period. Yet some visitors expressed disappointment, citing high costs and a lack of accessible public rest areas. A few even shared experiences of spending the night at fast food chains like McDonald's due to insufficient lodging or rest options. These complaints highlight the gap between visitor expectations and the city's evolving hospitality environment.

Despite the challenges, Hong Kong remains a critical financial hub in Asia with strong global ties. However, economists caution that rising inflation and ongoing affordability concerns could affect its long-term competitiveness and livability. While the government has introduced various relief measures, such as consumption vouchers and transport subsidies in recent years, sustained strategies to stabilize housing and consumer prices remain a pressing issue.

As economic pressures mount and international attention remains fixed on the city's unique status, questions linger about how Hong Kong can balance its role as a global metropolis with the basic needs of its residents and visitors.