Inflation in Hong Kong eased in July, government figures showed on Thursday, with consumer prices rising by 1.7 percent year on year, compared with a 2 percent increase in June.

Officials said the smaller increase was mainly due to rates concession in July this year.

Figures released by the Census and Statistics Department also showed that netting out the effects of all government one-off relief measures, the rate of increase in the city's underlying inflation remained unchanged at 1.9 percent.

"Inflation of fuel-related items stayed high, with some showing accelerated increases. Yet, overall inflation remained moderate, as price pressures on other components were generally contained," a government spokesman said in a statement.

"While the lingering geopolitical tensions in the Middle East remain a key source of uncertainty, overall inflation should continue to stay moderate as price pressures on other fronts remain broadly in check."


Edited by Edmond Fong