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Data checked · 2026-08-09Real value erosion

Inflation Purchasing Power Calculator

See what today’s cash buys later, and how much you would need later for the same basket. The latest composite CPI year-on-year rate is a snapshot, not a 20-year forecast.

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Inflation inputs

HK$ 1,000,000
20 year
2%

C&SD composite CPI 2026-06: 2% year on year; underlying 1.9%. Base 2019/20=100. Not a forecast.

2%

Buying power of today’s cash in 20 years

The dollar amount is unchanged; this is what that cash buys if prices rise at your assumed rate.

HK$672,971

To buy the same basket later you would need HK$1,485,947. Real return at 2% is 0.00% a year.

Same basket later

HK$1,485,947

Nominal amount needed

Real return

0.00%

Savings rate versus inflation

Real value if saved

HK$1,000,000

HK$1,485,947 nominal

Purchasing power erosion curve

Composite CPI is one official basket (Monthly Report on the Consumer Price Index — June 2026). Rent, school fees or medical costs can rise faster or slower. A single rate is not your household basket, and the latest year-on-year figure is not a 20-year path. Savings goal · Fixed deposit vs savings

Hong Kong inflation: purchasing power, not disappearing cash

The dollar amount in an account does not vanish because of inflation. What changes is what that cash can buy. This page shows two figures: the buying power of today’s cash after n years, and the nominal amount needed later for the same basket. Both use your assumed rate. Neither is a forecast.

The Census and Statistics Department publishes a composite CPI and an underlying CPI. The data centre’s latest checked snapshot is June 2026: composite CPI 2.0% year on year, underlying 1.9%, base 2019/20=100. That is a published year-on-year change, not a path that will hold for twenty years. Rent, school fees or medical costs can move differently from the headline index.

Real return is (1 + savings rate) ÷ (1 + inflation) − 1, not a casual subtraction. At 2% savings and 2% inflation, real return is about 0%. Do not apply a promotional first-tier savings rate to a whole balance if you would not actually earn it.

For long-term planning, test a lower and a higher inflation rate, and keep emergency cash separate from investments. This page does not forecast property, school or medical prices. The official index is the latest C&SD release.

Data status

Official Composite CPI through 2026-06

Last checked2026-08-09
Official basis

The Census and Statistics Department Composite CPI uses 2019/20=100 as its base; the latest published year-on-year change is 2%.

Planning assumptions

The calculator's long-term inflation rate is selected by the user and does not change automatically with one monthly release.

Not included

Does not reflect an individual's spending mix, asset prices, renting or ownership differences, or future policy and price changes.

Latest update

2026-07-21: Checked the latest Composite CPI and underlying inflation rate.

References

Site data last reviewed: 2026-08-09 · The sources above are for reference only; please refer to the latest official announcements from the relevant organisations.

Think a figure, rule or source needs updating? Report this page

FAQs

Does inflation reduce the dollars in my account?

No. The Hong Kong dollar balance stays the same. What falls is what that cash can buy. This page shows that change in purchasing power.

Is 2% the official inflation forecast?

No. 2.0% is the data centre’s checked composite CPI year-on-year change for June 2026. C&SD’s latest release is authoritative, and one year cannot be projected for twenty years.

What is the difference between composite and underlying CPI?

Underlying CPI removes some one-off government measures to show the price trend. Either figure can be an assumption. Neither is your household basket.

How is real return calculated?

This page uses (1 + savings rate) ÷ (1 + inflation) − 1. At 2% savings and 2% inflation, real return is about 0%.

Can I use the same rate for rent or school fees?

Not necessarily. The composite index is one official basket. Individual items can rise faster or slower. This page does not forecast property or school fees.

Are the food and transport examples official prices?

No. They are illustrations scaled at the rate you enter, not C&SD item indexes.

Client-side only: All data is calculated on your device and is not uploaded to any server. Results are for reference only and do not constitute professional financial or legal advice.