Consumer Prices Rise 1.7% in July 2026, Increase Remains Moderate Amid Government Relief Measures

Consumer Price Indices for July 2026

The Census and Statistics Department (C&SD) released today (August 20) the Consumer Price Index (CPI) figures for July 2026. According to the Composite CPI, overall consumer prices rose by 1.7% in July 2026 over the same month a year earlier, smaller than the corresponding increase (2.0%) in June 2026. The smaller increase was mainly attributable to the Government's provision of rates concession in July 2026 as compared with July 2025 without such concession, whereas the concession was in place in June of both years. Netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in July 2026 was 1.9%, the same as that in June 2026.

The Census and Statistics Department, Photo source: reference image

On a seasonally adjusted basis, the average monthly rate of increase in the Composite CPI for the 3-month period ending July 2026 was 0.2%, and that for the 3-month period ending June 2026 was 0.1%. Netting out the effects of all Government's one-off relief measures, the corresponding rates of increase were both 0.2%.

Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 1.2%, 1.8% and 2.0% respectively in July 2026, as compared to 1.8%, 2.1% and 2.2% respectively in June 2026. Netting out the effects of all Government's one-off relief measures, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 1.6%, 2.0% and 2.1% respectively in July 2026, as compared to 1.5%, 2.0% and 2.1% respectively in June 2026.

On a seasonally adjusted basis, for the 3-month period ending July 2026, the average monthly rates of change in the CPI(A), CPI(B) and CPI(C) were all 0.2%. The corresponding rates of change for the 3-month period ending June 2026 were 0.0%, 0.1% and 0.1% respectively. Netting out the effects of all Government's one-off relief measures, the average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) for the 3-month period ending July 2026 were all 0.2%, the same as those for the 3-month period ending June 2026.

Amongst the various components of the Composite CPI, year-on-year increases in prices were recorded in July 2026 for electricity, gas and water (10.8%), transport (5.0%), miscellaneous services (4.9%), miscellaneous goods (2.3%), meals out and takeaway food (0.9%), clothing and footwear (0.6%), alcoholic drinks and tobacco (0.1%), and housing (0.1%).

On the other hand, year-on-year decreases in the components of the Composite CPI were recorded in July 2026 for durable goods (-0.2%), and basic food (-0.2%).

Photo source: reference image

Taking the first 7 months of 2026 together, the Composite CPI rose by 1.7% over the same period a year earlier. The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.6%, 1.8% and 1.8% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.6%, 1.4%, 1.7% and 1.8% respectively.

For the 3 months ending July 2026, the Composite CPI rose by 1.9% over the same period a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 1.6%, 2.0% and 2.1% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.9%, 1.5%, 2.0% and 2.1% respectively.

For the 12 months ending July 2026, the Composite CPI on average rose by 1.5% over the same period a year earlier. The respective increases in the CPI(A), CPI(B) and CPI(C) were all 1.5%. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.4%, 1.3%, 1.4% and 1.5% respectively.

Photo source: reference image

Commentary

A Government spokesman said that the underlying Composite CPI rose by 1.9% in July over a year earlier, same as the preceding month. 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.

Looking ahead, the continued feed-through of higher international oil prices to fuel-related components will pose upward pressure to consumer price inflation. 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.

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Further information

More detailed statistics are given in the "Monthly Report on the Consumer Price Index". Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1060001&scode=270).

For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD (Tel: 3903 7374 or email: cpi@censtatd.gov.hk).

Special Practice Notes on Civil Claims arising from Tai Po Wang Fuk Court Fire

The following is issued on behalf of the Judiciary:

The Judiciary issued two Special Practice Notes today (November 12) setting out the handling approach of civil claims arising from the fire at Wang Fuk Court in Tai Po. They seek to ensure a fair and proportionate distribution of judicial resources without impairing the parties' right to access to court and a fair trial.

The Judiciary. Photo source: reference image

Taking into account the extensive casualties and severe damage caused by the fire, the Judiciary anticipates that a large number of claims involving complex issues and substantial sums may soon be brought before the courts. Bearing in mind the time, costs and uncertainties involved in litigation, it is in the interests of the parties and the public that these claims be resolved initially by settlement through without prejudice negotiations, and failing which, by alternative dispute resolution (ADR) including mediation, with litigation as the last resort.

The two Special Practice Notes direct parties to attempt resolving their disputes arising from the fire by ADR before and after commencement of proceedings, and put in place special expedited court procedures, with a view to settling the claims fairly, quickly and at reasonable cost. They include:

• Special Practice Note - Civil Claims arising from the Tai Po Wang Fuk Court Fire (SPN 1/2026): covering all civil claims arising from the fire, with the exception of certain specified types of claims, to be handled by the High Court or the District Court; and

• Special Practice Note - Employees'Compensation Claims and Civil Claims arising from the Tai Po Wang Fuk Court Fire (SPN 2/2026): covering employees'compensation claims and civil claims arising from the fire to be handled by the District Court and the Small Claims Tribunal or the Labour Tribunal respectively.

The two Special Practice Notes have taken immediate effect. They are available on the Judiciary's website at legalref.judiciary.hk/lrs/common/en/Practice_Notes.jsp.

The Judiciary is not in a position to give legal advice to litigants or comment on the merits of individual cases.Members of the public should consult lawyers or the Legal Aid Department (www.lad.gov.hk/eng/las/las.html) for legal advice and assistance as appropriate on the conduct of litigations (including the application of the two Special Practice Notes) where necessary. There are also various free legal services in Hong Kong, including the Free Legal Advice Scheme operated by the Duty Lawyer Service at District Offices or Home Affairs Enquiry Centres of the Government. For details, please refer to its website at www.dutylawyer.org.hk.

As regards mediation services, the Judiciary has launched a dedicated webpage (mediation.judiciary.hk/en/mediation_wfc.html) to provide one-stop information on mediation related to civil claims arising from the fire. Members of the public may refer to the webpage for relevant information, including practical information on mediation, mediation services in the community, and contact information of the Judiciary's Integrated Mediation Offices.

Wang Fuk Court. Photo source: reference image