CPI rises by lowest amount in 10 years
CPI rises by lowest amount in 10 years
In the first seven months of the year, the country's consumer price index (CPI) increased 0.86 per cent – the lowest level of growth over the past 10 years.
The CPI rose 0.13 per cent in July over the previous month after a surge in June, the General Statistics Office (GSO) said yesterday.
The CPI posted a 0.9 per cent increase against the same period last year and a 0.68 per cent increase against December last year.
Do Thi Bich Ngoc, deputy head of the GSO's CPI Department, said the CPI had increased mainly due to the university entrance exam and the hot weather, which together pushed up the prices in restaurants, of liquor and for public transport.
The prolonged period of hot weather also increased demand for electricity and water by 1.32 per cent and 0.22 per cent, respectively, Ngoc said. Since the beginning of July, the prices of health care services in HCM City had risen in some districts, resulting in the index rising by 0.15 per cent against the previous month.
Nine of the 11 goods used to calculate the monthly CPI saw an increase in their prices in July. Garments, hats and shoes posted the highest increase of 0.25 per cent, followed by housing and building materials, which rose by 0.22 per cent; liquor and tobacco, which climbed 0.18 per cent; and transport, which rose 0.16 per cent.
The price of education remained almost unchanged, while telecommunications prices fell 0.02 per cent.
The office's figures show that some factors contributed to curbing the rise of the CPI last month, including stable prices of essential goods in the world market, abundant food supplies and falling gas prices, which are currently at the level of VND3,500-4,000 for a 12-kilo tank. The drop in oil prices on June 19 and July 4 also contributed to curbing the rise of the CPI.
Last month, the price of gold in the world market stood at around US$1,150 per ounce – the lowest level in the past five years. The domestic price hovered around VND3.3 million ($152) per tael.
The US dollar rose 0.09 per cent in July and its exchange rate was stable at VND21,835 per $1. Ngoc forecast that the CPI would be slightly higher in August due to higher demand for some foods during the upcoming mid-autumn festival.
In addition, the hot weather could lead to more power and water consumption than last month, while some universities and colleges could increase their tuition fees for the 2015-16 academic year.
The increasing number of imported goods would also contribute to a rise in the CPI, the official said.
