July sees 2.5% inflation

Overall consumer prices rose 2.5% year on year in July, a higher rate of increase than the 1.5% seen in June, the Census & Statistics Department announced today.

Netting out the effects of the Government’s one-off relief measures, underlying inflation was 1.2%, also higher than that recorded in June.

Compared with July last year, price increases were seen in the following categories: alcoholic drinks and tobacco; housing; transport; meals out and takeaway food; miscellaneous services; electricity, gas and water; miscellaneous goods; and basic food.

Meanwhile, year-on-year decreases were recorded for clothing and footwear; and durable goods.

The Government said overall inflation should stay mild in the near term, while domestic costs may face some moderate upward pressures as the Hong Kong economy continues to grow.

External price pressures should stay on a broad moderating trend, although geopolitical tensions may bring uncertainties, it added.