Underlying inflation rate also edged up 2%.
Overall consumer prices rose 2% year-on-year in July, the Census & Statistics Department said.
Netting out effects of the Government's one-off relief measures, the underlying inflation rate was also 2%, slightly higher than the previous month.
Year-on-year price increases were recorded in July for transport, housing, meals bought away from home, food (excluding meals bought away from home), miscellaneous services, clothing and footwear, and miscellaneous goods.
Year-on-year price decreases were recorded for durable goods, electricity, gas and water, as well as alcohol and tobacco.
The department said consumer price inflation stayed moderate in July.
Looking ahead, it expects inflation to remain contained in the near term, given low imported inflation and moderate local costs pressure.
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