Overall consumer prices increase 4.0% in July

Inflation continues to moderate.

Overall consumer prices rose by 4.0% in July 2014, which was higher than the 3.6% increase in June 2014.

According to a research note from Barclays, this was mainly because some households had used up the government’s one-off electricity subsidy.

Excluding the one-off relief measures, Hong Kong’s underlying inflation rate was 3.3% in July, slightly smaller than June 3.4% with a smaller increase in private housing rentals as well as the charges for package tours.

Here’s more from Barclays:

Among the various categories, food prices rose 4.1%, housing was up 4.6%, clothing and apparel prices were up 2.0%, while durable goods prices fell by 3.1%.

For the first seven months of 2014, headline and underlying inflation were at 3.9% and 3.6%, respectively.

Commenting on July’s inflation data, a government spokesman commented that underlying inflation should remain contained for the rest of the year given the generally modest price pressures both locally and externally.