CPI picks up 1.79 % in eight months, lowest in five years: GSO

The August index edged up 0.25 % month-on-month, and 2.82 % year-on-year, largely owing to higher prices of food and foodstuff in cities and provinces under social distancing measures, according to the GSO.

The August CPI in urban areas rose 0.34 % this month, higher than the 0.14 % increase in rural areas.

Meanwhile, the eight-month core inflation rose by 0.9 % year-on-year.

During the January-August period, the average fuel price inched up 22.86 % year-on-year, pushing the CPI up 0.82 percentage point. 

Education service cost grew 4.44 % during period, adding 0.24 %age point to the CPI. while rice prices grew 6.68 %, contributing to a rise of 0.17 percentage point in the CPI.

In contrast, eight-month prices of food declined 0.38 % from the same period last year, resulting in a 0.08-%age-point slide of the CPI. It was because of drops in prices of staples, for example, pork (down 6.49 %), and chicken (down 1.34 %).

As the Electricity of Vietnam (EVN) has made several rate cuts to support consumers affected by COVID-19, the eight-month electricity price slid 0.83 % year-on-year, making the CPI to edge down 0.03 percentage point.

With travel restrictions continuing to be in place to curb the spread of COVID-19, rail tickets, airfares and prices of holiday packages fell by 0.4 %, 19.85 %, and 2.76 %, respectively.

The average gold price surged 13.8 % year-on-year during the period.