Customers dine at a restaurant in Hong Kong on April 14, 2022. (PHOTO / AFP)

Hong Kong's consumer prices rose 1.8 percent in July compared to a year earlier, down from 1.9 percent in June, the Census and Statistics Department announced on Monday.

The underlying inflation rate, which nets out the effects of the government's one-off relief measures, saw a 1.6 percent increase year-on-year in July. The rise was also smaller than the corresponding increase of 1.7 percent logged in June. 

The sharpest price increase was recorded for alcoholic drinks and tobacco – which went up by 18.4 percent – followed by electricity, gas and water at nearly 10 percent

The sharpest price increase was recorded for alcoholic drinks and tobacco – which went up by 18.4 percent – followed by electricity, gas and water at nearly 10 percent. Costs for clothing and footwear rose 6.6 percent, while meals out and takeaway food climbed by 3.7 percent. 

READ MORE: Hong Kong's Jan inflation up 2.4%

On the other hand, year-on-year decreases of 3.3 percent and 0.5 percent were recorded in July for durable goods and basic food respectively.

“Prices of electricity surged further year-on-year, but the pace moderated notably from early this year. Prices of clothing and footwear as well as meals out and takeaway food continued to register visible increases. Price pressures on other major components remained broadly in check,” a Hong Kong Special Administrative Region government spokesman said.

Taking the first seven months of this year together, the underlying inflation rate rose 2 percent over the same period a year earlier.

READ MORE: Hong Kong's November inflation up 1.8%

Looking ahead, the spokesman said overall inflation should stay moderate in the near term and external price pressures should recede further. 

“While domestic business costs might face some upward pressures alongside the economic recovery, they should remain largely moderate in the near term,” the spokesman added. 

Contact the writer at evanliu@chinadailyhk.com