Vietnam's CPI increase lowest since 2016

A consumer shops for food at a supermarket in HCM City. Consumer price index increased by 1.64 per cent in January – July period, the lowest rate since 2016. — VNA/VNS

HANOI (Vietnam News/ANN): The consumer price index (CPI) increased by 1.64 per cent in the January to July period, the lowest rate since 2016, with lower food and electricity prices after Government efforts to stabilise prices and support virus-hit citizens and enterprises in the pandemic, according to the General Statistics Office (GSO).

In July alone, CPI rose by 0.62 per cent over June and 2.64 per cent over July 2020.

July saw an increase in transportation services charges due to fuel price hikes on June 26, July 12 and July 27.

Altogether this pushed up E5 biofuel by VNĐ730 per litre over the previous month. The increase in transportation services charges pushed up CPI overall by 0.23 percentage point.

Food and catering services also saw an increase of 0.67 per cent in prices due to the rising demand for goods in localities where social distancing was in place, pushing up overall CPI by 0.22 percentage points.

Among those experiencing a month-on-month downturn, prices of cultural, entertainment and tourism services were hit the hardest by Covid-19, dropping by 0.1 per cent. It was followed by postal and telecom services (0.05 per cent), and garment-textile, headwear and footwear (0.03 per cent).

For the seven-month period, the index gained 1.64 per cent, the lowest since 2016.

The GSO said that CPI was kept at a low level because of the Government’s efforts to stabilise the price of food which saw a drop of 0.44 per cent against the same period last year and pushed CPI down by 0.09 percentage point. Pork prices fell by 5.4 per cent and chicken by 1.7 per cent in the period.

The Government also implemented packages to support virus-hit citizens and enterprises, including lowering power prices from May which helped push down CPI by 0.06 percentage point.

The January-July period, however, saw increases in prices of several goods and services, including fuel prices by 20.36 per cent, gas by 18.43 per cent, education services by 4.46 per cent, rice by 6.83 per cent and building materials by 5.6 per cent.

Core inflation inched down 0.06 per cent in July but edged up 0.89 per cent from January to July, reflecting that price fluctuations mainly came from changes in food, fuel, power and gas prices. These are the lowest levels since 2011.

Former GSO Director Nguyễn Bích Lâm said it is likely that the CPI would grow further in the remaining months of the year, particularly in the final months.

However, it was expected to range around 3.3 – 3.6 per cent, within the target set by the National Assembly at below four per cent for the full year, he said. — Vietnam News/Asia News Network

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Vietnam , CPI


Next In Aseanplus News

Evergrande says six execs redeemed investment products in advance
JKJAV: 238,002 Covid-19 vaccine jabs given on Friday (Sept 17)
Asean News Headlines at 10pm on Friday (Sept 17)
Singapore: 934 locally transmitted Covid-19 cases in country, highest since April last year - only one imported case on Friday (Sept 17)
Indonesia to reopen Bali for international visitors in October as govt announces 3,835 new Covid-19 cases on Friday (Sept 17)
Thailand govt eyes wider opening of economy as it reports 14,555 new Covid-19 cases on Friday (Sept 17)
Philippines take more virus measures as country logs 20,336 new Covid-19 cases and total rises to 2,324,475
Vietnam reports 11,521 new Covid-19 cases, 667,650 in total - Ho Chi Minh City still highest with 5,972 infections
Singapore optimistic as severe Covid-19 cases remain low despite current rise in virus infections
Indonesia warns against arms race after Australian nuclear sub pact

Stories You'll Enjoy