Consumer prices rose 1.8% in July year-on-year, slightly down from the 1.9% increase in June, the Census & Statistics Department announced today.

Netting out the effects of the Government's one-off relief measures, the underlying inflation rate was 1.6%, also slightly lower than June’s 1.7%.

Compared with July last year, price increases were seen across the following categories: alcoholic drinks and tobacco; electricity, gas and water; clothing and footwear; meals out and takeaway food; miscellaneous services; transport; miscellaneous goods; and housing. By contrast, year-on-year decreases in prices for durable goods and basic food were recorded.

The Government said underlying consumer price inflation remained moderate in July. It added that electricity prices continued to surge year-on-year, but that the pace had moderated notably from early this year.

It noted that prices for clothing and footwear, as well as for meals out and takeaway food, continued to register visible increases, while price pressures on other major categories remained broadly in check.

Looking ahead, the Government said overall inflation should stay moderate in the near term and that external price pressures should recede further. It added that while domestic business costs could face some upward pressures amid the economic recovery, these should remain largely moderate in the near term.