Hong Kong's inflation records a modest 1 percent gain in July

Hong Kong's overall inflation saw a modest 1 percent growth in July, slowing from a 1.4 percent rise in June, official data showed. 

The increase in the consumer price index was also smaller than the 0.9 percent expansion projected by economists. 

The smaller gain was mainly due to a lack of rates concessions in July, the Census and Statistics Department said. 

Netting out the effects of all the government's one-off relief measures, the underlying inflation rate was also 1 percent in July, the same as that in June. 

Among the various components, a 1.8 percent year-on-year rise in prices was recorded for housing in July, followed by a 1.7 percent gain in alcoholic drinks and tobacco prices and a 1.3 percent hike in meals out and takeaway food. 

On the other hand, the costs for clothing and footwear fell by 3.3 percent last month, and that for durable goods also declined 2.3 percent. 

A government spokesman said price pressures on major components were largely contained in July and that overall inflation should remain modest in the near term as pressures from domestic costs and external prices stay broadly in check.