Business
Vietnam consumer prices up 0.18% m/m in July
Core inflation in the first seven months this year picked up 1.89% year-on-year.
Vietnam's consumer price index (CPI) saw an increase of 0.18% in July against the previous month, up 1.59% versus the end of 2018 and 2.44% year-on-year, according to the General Statistics Office (GSO).
This resulted in an increase of 2.61% year-on-year for the CPI in the first seven months of 2019, the lowest growth rate for a seven-month period over the last three years.
The rise in the basis wage, hikes in petroleum and electricity prices and the impact of African swine fever directly led to a higher CPI in July, stated the GSO.
Nine out of 11 commodity groups, which are components of the basket for CPI calculation, witnessed monthly hikes in prices. Among them, other goods and services posted the sharpest increase of 0.94%.
Other groups that saw their prices increase were education (0.22%); culture, entertainment, and tourism (0.15%); beverages and cigarettes (0.12%); garment, footwear and hats (0.1%); household equipment and appliances (0.08%); telecommunications (0.01%); medicine and healthcare services (0.02%); food and catering services (0.33%).
Two groups that saw their prices down in July were transportation and housing, water and electricity supply, and construction materials with 0.03%.
According to the GSO, core inflation in July picked up 0.23% month-on-month, resulting in an increase of 2.04% year-on-year on average in the January – July period.
This led to an increase of 1.89% in the core inflation rate in the first seven months compared to the same period of 2018.
Previously, experts said under favorable conditions, it is feasible for Vietnam to tame inflation at below 4% as targeted in 2019, citing the CPI below 4% and the core inflation rate under 2% over the past few years as reason.
Deputy Prime Minister Vuong Dinh Hue has recently said that the government will keep inflation at 3.3%-3.9% this year.
The Vietnam Institute for Economic and Policy Research (VEPR) in its latest annual economic report said the rate is likely to reach 3.5%.
In 2018, the CPI increased by 3.54% against 2017, below the target of 4% set by the National Assembly.
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The rise in the basis wage, hikes in petroleum and electricity prices and the impact of African swine fever directly led to a higher CPI in July, stated the GSO.
Nine out of 11 commodity groups, which are components of the basket for CPI calculation, witnessed monthly hikes in prices. Among them, other goods and services posted the sharpest increase of 0.94%.
Other groups that saw their prices increase were education (0.22%); culture, entertainment, and tourism (0.15%); beverages and cigarettes (0.12%); garment, footwear and hats (0.1%); household equipment and appliances (0.08%); telecommunications (0.01%); medicine and healthcare services (0.02%); food and catering services (0.33%).
Two groups that saw their prices down in July were transportation and housing, water and electricity supply, and construction materials with 0.03%.
According to the GSO, core inflation in July picked up 0.23% month-on-month, resulting in an increase of 2.04% year-on-year on average in the January – July period.
This led to an increase of 1.89% in the core inflation rate in the first seven months compared to the same period of 2018.
Previously, experts said under favorable conditions, it is feasible for Vietnam to tame inflation at below 4% as targeted in 2019, citing the CPI below 4% and the core inflation rate under 2% over the past few years as reason.
Deputy Prime Minister Vuong Dinh Hue has recently said that the government will keep inflation at 3.3%-3.9% this year.
The Vietnam Institute for Economic and Policy Research (VEPR) in its latest annual economic report said the rate is likely to reach 3.5%.
In 2018, the CPI increased by 3.54% against 2017, below the target of 4% set by the National Assembly.
