July inflation slows to 1.7% on rates concession

Electricity, gas, and water prices jumped 10.8% as fuel pressures persist. 

Hong Kong’s consumer prices rose 1.7% year on year (YoY) in July, slowing from a 2% increase in June, according to data from the Census and Statistics Department (C&SD).

The slower headline inflation was attributed to the government’s rates concession in July, compared with no such relief in the same month of 2025.

Underlying inflation, excluding the effects of the one-off relief measures, stood at 1.9%, unchanged from June.

The C&SD cited a government spokesperson, who said higher international oil prices continued to feed through to fuel-related items and could put further upward pressure on consumer prices.

“While the lingering geopolitical tensions in the Middle East remain a key source of uncertainty, overall inflation should continue to stay moderate as price pressures on other fronts remain broadly in check,” it added.

Electricity, gas and water recorded the largest price increase amongst the major components, climbing 10.8% YoY. Transport costs increased 5%, whilst miscellaneous services rose 4.9%.

Prices of miscellaneous goods rose 2.3%, while meals out and takeaway food prices rose 0.9% and clothing and footwear prices rose 0.6%. Housing edged up 0.1%. 

Meanwhile, prices of durable goods and basic food each declined 0.2%.

For the first seven months, the Composite Consumer Price Index rose 1.7% from a year earlier.