|CPI for April suffers 1.54% plunge due to low purchasing power
This drop in CPI can be attributed to the recent imposition of social distancing measures both nationwide and internationally as countries seek to slow the spread of the novel coronavirus.
As a result, these measures have caused a sharp drop in terms of the price of gasoline both domestically and globally. Simultaneously, the implementation of the Prime Minister’s Directive No.16 on social distancing has also led to the price of many non-food products to plummet.
This decline can be seen by total estimated retail sales of consumer goods and services suffering an annual decrease of 26% in April, while total retail sales of consumer goods and services have dropped by 4.3% throughout the year.
According to the GSO, six out of 11 commodity groups have recorded price declines in comparison to the March figures, with transport costs experiencing the biggest fall with a drop of 13.86%. This has largely been caused due to the effects of the recent decline in the price of petrol and oil.
This CPI drop was also seen in other sectors such as culture, entertainment, tourism services, garment, footwear, post and telecommunications, along with other groups that provide goods and services.
Elsewhere, catering services, beverage and cigarette firms, groups selling household appliances, along with drugs and medical services recorded respective increases of 0.66%, 0.13%, 0.06%, and 0.03%
Despite these falls occurring in April, the CPI during the reviewed period has increased by 4.9% in comparison to the average level against the same period last year, the highest increase seen during the 2016 to 2020 period.
According to the targets set by the National Assembly, the country will be able to maintain macroeconomic stability whilst curbing inflation to below 4% over the course of the year from its current rate of 4.9%.