Inflation in Hong Kong remained "modest" in July, with a key gauge tracking overall consumer prices rising by 1 percent year on year, smaller than the 1.4 percent increase seen a month earlier.

Official data released by the Census and Statistics Department also showed that the underlying inflation rate, or the rate netting out the effects of all government's one-off relief measures, rose by 1 percent in July, the same as in June.

The government attributed the smaller rise in overall consumer prices to the "lower ceiling of rates concession" in June, compared with the same month last year, while there was no such concessions in the July both this and last year.

By categories, prices for housing saw the biggest spike of 1.8 percent, alcoholic drinks and tobacco climbed 1.7 percent, and transport rose 1.4 percent.

Prices of clothing and footwear, on the other hand, declined by 3.3 percent from a year ago, while those for durable goods dropped by 2.3 percent.

Taking the first seven months of the year as a whole, overall consumer prices rose by 1.6 percent.

Commenting on the data, a government's spokesman said consumer price inflation "stayed modest" in July, with price pressures "largely contained".

"Looking ahead, as pressures from domestic costs and external prices stay broadly in check, overall inflation should remain modest in the near term," he added.