August CPI posts 7-month lowest increase
The Vietnam’s General Statistics Office reported on August 24 that the national consumer price index (CPI), the main gauge of inflation, has recorded a seven-month lowest increase since February this year and the lowest level on a monthly basis over the past 10 years.
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According to the office’s report, August’s CPI rose slightly by 0.1% from July, compared with a 0.13% increase in July, 0.46% in June and 0.54% in May.
The third straight monthly decline in the CPI increase was driven by a fall in prices of nearly half of the items in the goods and services basket used to calculate CPI, deputy head of the office’s Price Statistics Department Do Thi Ngoc said on August 24.
Five among 11 groups of goods and services of the basket saw a price drop including restaurant and catering services (0.14%); transport service (1.97%); culture, entertainment and tourism (0.12%); post and telecommunication services (0.03%); and housing and building materials (0.02%).
Ngoc attributed the slide in the price of restaurant and catering services to the abundant supply of food and foodstuffs that saw prices drop 0.35% and 0.19%, respectively.
The price of transport services was dragged down by the cut in petrol prices which happened in late July and early August, followed by decreases in bus, coach and ship fares.
Additionally, the automobile and motorbike market seemed to stagnate in August as the month coincides with the seventh lunar month, traditionally called the Ghost Month, that reduced prices of vehicles by 0.12%, Ngoc added.
Speaking about the reason that led to CPI’s marginal increase, Ngoc said that the major contribution was from the costlier health care services following a joint decision of ministries of health and finance.
Accordingly, medicine and healthcare services prices this August post the sharpest monthly hike, 6.18%, compared to five other goods and services categories that share the same upward trend.
In addition, nine provinces and cities also upped tuition fees as stipulated in a Government decree last year. Higher demand for educational tools like textbooks, notebooks and pens to prepare for the new school year also boosted education prices, she added.
In August, gold prices rose by 1.72% from last month while the VND/USD exchange rate was relatively stable, with one US dollar exchanged for VND22,330.
Compared with the same period last year, the August CPI increased by 2.57%. The eight-month CPI climbed 1.91% year on year.
The GSO said core inflation (CPI excluding food items; energy products and commodities under State management including medical and educational services) this month inched up 0.09% from July and 1.83% from a year before.
The eight-month core inflation climbed 1.81% from the same period of 2015.
The small difference between eight-month headline inflation (1.91%) and core inflation (1.81%) compared to the same period last year proved that the current monetary policy is effective, helping to stabilise the macro-economy, the office noted.
The GSO forecasts September will register a faster CPI growth rate than that of August because of higher educational services and petrol prices.
August CPI in the country’s two biggest cities – Hanoi and HCM City – marginally fell by 0.17% and 0.2%, respectively, from the previous month, the localities’ statistics office reported on August 24.
