FX.co ★ Hong Kong Annual Inflation Eases in July

Hong Kong’s annual inflation rate eased to 1.7% in July 2026, down from 2% in each of the previous two months. The deceleration was largely driven by weaker housing inflation, which fell sharply to 0.1% from 1.1%, and by slower transport inflation, which moderated to 5% from 5.5%.

Additional downward pressure came from durable goods, where prices declined 0.2% after a 1.1% increase previously, while inflation for clothing and footwear edged down to 0.6% from 0.7%.

In contrast, inflation picked up for utilities (10.8% vs. 9.2%) and food (0.5% vs. 0.3%), while prices for alcoholic drinks and tobacco rose 0.1%. Core inflation was unchanged at 1.9%, as fuel-related items continued to record elevated inflation, while price pressures in most other categories remained contained.

On a monthly basis, consumer prices increased 0.2%, following two consecutive months of no change. Looking ahead, authorities expect the ongoing pass-through of higher global oil prices to fuel-related components to continue exerting upward pressure on inflation.