The Census and Statistics Department released the Consumer Price Index figures for July 2026 on Tuesday (August 20). According to the Composite CPI, overall consumer prices in July 2026 increased by 1.7% compared with the same month a year earlier, lower than the corresponding increase of 2.0% recorded in June 2026.

The smaller increase was mainly due to the government's provision of rates concession in July this year, whereas no such concession was granted in July last year; meanwhile, concessions were applicable in both June of last year and this year. Netting out the effects of all government one-off relief measures, the year-on-year increase in the Composite CPI for July 2026, representing the underlying inflation rate, stood at 1.9%, unchanged from the corresponding rise in June 2026.

On a seasonally adjusted basis, the average monthly increase in the Composite CPI for the three months ending July 2026 was 0.2%, compared with the corresponding rise of 0.1% for the three months ending June 2026. After netting out the effects of all government one-off relief measures, the corresponding increases were both 0.2%.

Looking at the sub-indices, the year-on-year increases in the CPI(A), CPI(B) and CPI(C) for July 2026 were 1.2%, 1.8% and 2.0%, respectively, while the corresponding increases for June 2026 were 1.8%, 2.1% and 2.2%. Netting out the effects of all government one-off relief measures, the year-on-year increases in the CPI(A), CPI(B) and CPI(C) for July 2026 were 1.6%, 2.0% and 2.1%, and the corresponding increases for June 2026 were 1.5%, 2.0% and 2.1%.

On a seasonally adjusted basis, the average monthly rates of change in the CPI(A), CPI(B) and CPI(C) for the three months ending July 2026 were all 0.2%, while the corresponding rates of change for the three months ending June 2026 were 0.0%, 0.1% and 0.1%, respectively. Netting out the effects of all government one-off relief measures, the seasonally adjusted average monthly rates of change in the CPI(A), CPI(B) and CPI(C) for the three months ending July 2026 were all 0.2%, the same as the corresponding rates for the three months ending June 2026.

Among the various components of the Composite CPI, year-on-year increases in prices in July 2026 were recorded for electricity, gas and water (up 10.8%), transport (up 5.0%), miscellaneous services (up 4.9%), miscellaneous goods (up 2.3%), meals out and takeaway (up 0.9%), clothing and footwear (up 0.6%), tobacco and alcoholic drinks (up 0.1%), and housing (up 0.1%).

On the other hand, year-on-year decreases in prices in July 2026 were recorded for the Composite CPI components of durable goods (down 0.2%) and basic food (down 0.2%).

For the first seven months of 2026 as a whole, the Composite CPI rose by 1.7% over the same period a year earlier. The corresponding increases in the CPI(A), CPI(B) and CPI(C) were 1.6%, 1.8% and 1.8%, respectively. Netting out the effects of all government one-off relief measures, the corresponding increases were 1.6%, 1.4%, 1.7% and 1.8%, respectively.

For the three months ending July 2026, the Composite CPI rose by 1.9% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 1.6%, 2.0% and 2.1%, respectively. Netting out the effects of all government one-off relief measures, the corresponding increases were 1.9%, 1.5%, 2.0% and 2.1%.

For the twelve months ending July 2026, the Composite CPI rose by an average of 1.5% over the preceding year, with the corresponding increases in the CPI(A), CPI(B) and CPI(C) all at 1.5%. Netting out the effects of all government one-off relief measures, the corresponding increases were 1.4%, 1.3%, 1.4% and 1.5%, respectively.

A government spokesperson noted that the underlying Composite CPI rose by 1.9% year-on-year in July, matching the previous month's figure. Inflation in fuel-related items continued to remain elevated, with some components seeing faster increases. However, price pressures across other major components remained broadly modest, keeping overall inflation mild. Looking ahead, the continued pass-through of higher international oil prices to fuel-related items will add upward pressure on consumer price inflation. While the ongoing tensions in the Middle East remain a key source of uncertainty, overall inflation should stay moderate given that price pressures elsewhere remain largely contained.