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Friday, July 19, 2024

August CPI increases 0.88%

The Saigon Times

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HCMC – Vietnam’s Consumer Price Index (CPI) has risen by 0.88% in August versus July, with year-to-date data indicating a 3.1% increase, according to the General Statistics Office’s report on August 29.

The rise in inflation was mainly driven by escalating fuel and rice prices, along with a surge in housing rental charges. Domestic fuel and rice costs followed global trends, while increased housing demand contributed to higher rents.

Between January and August, the CPI edged up by 2.02% compared to December 2022 and by 2.96% year-on-year. The average CPI for the first eight months of 2023 showed a 3.1% annual rise, with core inflation increasing by 4.57%.

Among 11 groups of consumer goods and services used for CPI calculation, 10 have marked up in price, except for postal and telecommunications services, with a minor 0.17% price decrease.

The CPI surge was impacted by a 7.28% average increase in the education price index due to higher tuition fees in certain regions, contributing 45 basis points to the CPI.

Housing and construction material prices jumped by 6.65% year-on-year, adding 1.25 percentage points to the overall CPI. Rising input material costs like cement, iron, steel, and sand, coupled with increased housing rents, were major factors.

The cultural, entertainment, and tourism index grew by 3.18% due to Covid-19 restrictions, which boosted leisure and travel demand, adding 14 basis points to the CPI.

Food prices inched up by 3.04%, primarily due to heightened consumption during festive periods, contributing to a 65-basis-point CPI increase.

Household electricity prices surged by 3.99% due to increased electricity usage and a 3% retail electricity price adjustment, contributing 13 basis points to the CPI.

Domestic rice prices inched up by 2.96% in line with global trends, contributing eight basis points to the CPI.

Airplane ticket prices skyrocketed by 71.82%, train tickets by 31.3%, and bus tickets by 8.94%. Increased travel demand during holidays and summer led to a nine-basis-point CPI spike.

Other commodities and services marked up by 3.98% year-on-year, contributing 14 basis points to CPI growth, primarily due to healthcare insurance premium adjustments linked to a new base salary introduced in July 2023.

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