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Wednesday, July 24, 2024

Food, electricity prices drive up Vietnam’s CPI in July

The Saigon Times

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HCMC – Vietnam’s Consumer Price Index (CPI) has edged up by 0.45% in July against the previous month and 2.06% year-on-year, with the main drivers being higher prices of food and electricity, according to the General Statistics Office (GSO).

A report released on July 29 showed the nation’s CPI in January-July has inched up 3.12% over the same period in 2022, while core inflation has increased by 4.65%.

The CPI data for July also showed a divergence in inflation trends between urban and rural areas. The CPI in urban areas has inched up by 0.34% while in rural areas, the uptick is higher, at 0.58%.

Among 11 groups of consumer goods and services used for CPI calculation, 10 have marked up in price, except the postal and telecommunication experiencing a decrease of 0.12%.

Food and catering services prices have climbed by 0.63% in July, contributing 21 basis points to the overall CPI rise. Within this category, prices of rice and meat have notably surged, with rice and pork up by 0.24% and 2.7% month-on-month, respectively, due to increased demand during the travel season.

In the housing and construction sector, prices have risen by 0.51% in July, largely attributed to a significant 3.87% increase in retail electricity tariffs. In May, the prolonged hot weather led to heightened electricity and water consumption, prompting the Vietnam Electricity Group (EVN) to adjust up retail electricity tariffs.

The other goods and services category has jumped 2.84%, driven by a 2.86% rise in environmental sanitation services, a 0.37% increase in personal services, a 0.14% uptick in personal goods, and a 0.12% rise in commemorative and ceremonial services.

The beverages and tobacco group has recorded a 0.22% increase due to higher demand for refreshments during the summer season.

The culture, entertainment, and tourism category has grown 0.19% in price, primarily due to a 0.58% rise in domestic tourism services, a 0.49% increase in outbound travel costs, and a 0.14% uptick in hotel and lodging expenses as the travel demand surged during the summer. Sports-related services have edged up 0.23%, cultural equipment 0.19%, and sporting goods 0.15% due to higher summer-related demand.

Clothing, hat, and footwear prices have increased 0.18% as consumers are embracing the season’s fashion trends, with ready-made clothing prices rising 0.2% and footwear costs going up 0.11%. Clothing-related services and footwear-related services have climbed by 0.29% and 0.6%, respectively.

For the remaining groups, including household appliances and tools, transportation, medicaments and health services, and education services, prices have increased by 0.03% to 0.15%.

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