Hong Kong's overall consumer prices rose by 1.2 percent year on year to a four-month high in October, in line with market expectations but slightly higher than the 1.1 percent increase seen a month earlier.

Official data released by the Census and Statistics Department also showed that underlying inflation, or the increase in the composite consumer price index (CPI) netting out government one-off relief measures, stood at 1 percent year on year last month, unchanged from September.

While transport prices saw the biggest spike of 3.1 percent year on year, alcoholic drinks and tobacco rose by two percent, and housing by 1.6 percent.

Prices of clothing and footwear declined by 4.7 percent, while durable goods dropped by 3.3 percent, and electricity, gas and water were down by 0.3 percent.

A government spokesperson said inflation "stayed low" in October and price pressures on various major items continued to "be in check".

"Looking ahead, overall inflation should stay muted in the near term, as domestic cost pressures are mild and external price pressures are subdued," the spokesperson said.

On a seasonally adjusted basis, the average monthly rate of increase in the composite CPI for the three-month period ending in October was at 0.1 percent, lower than the 0.2 percent for the three-month period which ended in September.