Hong Kong: July CPI increased by 1.7% year-on-year.

The Hong Kong government's Census and Statistics Department announced today (August 20) the Consumer Price Index (CPI) for July 2026. According to the Composite Consumer Price Index, the overall consumer prices in July 2026 increased by 1.7% compared to the same month last year, lower than the corresponding increase of 2.0% in June 2026. The lower increase was mainly due to the government providing rates concession in July this year, while there was no such concession in July last year; however, there were relevant concessions in both June of last year and this year. Excluding the impact of all one-off government relief measures, the year-on-year increase of the Composite Consumer Price Index in July 2026 (i.e., the core inflation rate) was 1.9%, the same as the corresponding increase in June 2026. The seasonally adjusted Composite Consumer Price Index showed that the average monthly increase for the three months ending July 2026 was 0.2%, while the corresponding increase for the three months ending June 2026 was 0.1%. Excluding the impact of all one-off government relief measures, the corresponding increase was also 0.2%. From the detailed indices, the year-on-year increases in the Consumer Price Indices for category A, category B, and category C in July 2026 were 1.2%, 1.8%, and 2.0%, respectively, compared to the corresponding increases of 1.8%, 2.1%, and 2.2% in June 2026. Excluding the impact of all one-off government relief measures, the year-on-year increases for category A, category B, and category C in July 2026 were 1.6%, 2.0%, and 2.1%, respectively, while in June 2026, the increases were 1.5%, 2.0%, and 2.1%. The seasonally adjusted Consumer Price Indices for category A, category B, and category C showed that the average monthly change for the three months ending July 2026 was 0.2%, while the corresponding change for the three months ending June 2026 was 0.0%, 0.1%, and 0.1%. Excluding the impact of all one-off government relief measures, the average monthly change in the seasonally adjusted Consumer Price Indices for category A, category B, and category C for the three months ending July 2026 was also 0.2%, the same as the corresponding change for the three months ending June 2026. Among the components of the Composite Consumer Price Index, the categories that recorded year-on-year price increases in July 2026 included electricity, gas, and water (up 10.8%), transportation (up 5.0%), miscellaneous services (up 4.9%), miscellaneous goods (up 2.3%), dining out and takeout (up 0.9%), clothing (up 0.6%), tobacco and alcohol (up 0.1%), and housing (up 0.1%). On the other hand, the categories that recorded year-on-year price declines in the Composite Consumer Price Index in July 2026 were durable goods (down 0.2%) and basic food items (down 0.2%). For the first seven months of 2026 combined, the Composite Consumer Price Index increased by 1.7% compared to the same period last year, with the respective increases for category A, category B, and category C being 1.6%, 1.8%, and 1.8%. Excluding the impact of all one-off government relief measures, the respective increases were 1.6%, 1.4%, 1.7%, and 1.8%. For the three months ending July 2026, the Composite Consumer Price Index increased by 1.9% compared to the same period last year, while the indices for category A, category B, and category C increased by 1.6%, 2.0%, and 2.1%, respectively. Excluding the impact of all one-off government relief measures, the respective increases were 1.9%, 1.5%, 2.0%, and 2.1%. For the twelve months ending July 2026, the Composite Consumer Price Index increased by an average of 1.5% compared to the same period last year, with the respective increases for category A, category B, and category C being 1.5%. Excluding the impact of all one-off government relief measures, the respective increases were 1.4%, 1.3%, 1.4%, and 1.5%. A spokesperson for the Hong Kong government stated that the basic Composite Consumer Price Index increased by 1.9% year-on-year in July, unchanged from the previous month. Inflation in fuel-related items remains high, with some items witnessing accelerated increases. However, as price pressures in other major components are generally modest, the overall inflation remains moderate. Looking ahead, the higher international oil prices continue to pass through to fuel-related items, which will exert upward pressure on consumer price inflation. Although the ongoing tensions in the Middle East remain a major source of uncertainty, given that price pressures in other areas remain largely contained, overall inflation should continue to stay moderate.