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Apr 29, 2020 / 12:57

Vietnam’s consumer prices record 5-year low in April

The consumer prices, however, increased 4.9% year-on-year in the January- April period, the highest four-month growth rate during the 2016 – 2020 period.

Vietnam's consumer price index (CPI), the main gauge of inflation, in April saw a sharp decline to five-year low of 1.54% against the previous month as the Covid-19 pandemic caused a plunge in global oil and fuel prices, according to the General Statistics Office (GSO). 

 Data: GSO. Graphic: Hai Yen. 

The rate declined 1.21% versus the end of 2019 but up 2.93% year-on-year, resulting in an increase of 4.9% year-on-year of the CPI in the first four months of 2020, the highest four-month growth rate during the 2016 – 2020 period. 

 Data: GSO. Graphic: Hai Yen. 

Six out of 11 commodity groups, which are components of the basket for CPI calculation, witnessed month-on-month declines in prices. Among them, transportation posted the sharpest decrease of 13.86%, mainly due to the drop in fuel prices on March 29 and April 13, shaving 1.18 percentage points off the overall CPI.

Other groups that saw their prices down in April were housing, water and electricity supply, and construction materials (-2.33%) as landlords lowered house rents in support of tenants; culture, entertainment, and tourism (-0.4%), due to people limited outdoor activities on Covid-19; garment, footwear and hats (-0.17%); post and telecommunications (-0.02%); and other goods and services (-0.13%). 

The four groups that saw their prices up in April were food and catering services (0.66%); beverages and cigarettes (0.13%); household equipment and appliances (0.06%); medicine and healthcare services (0.03%); only education remained unchanged.

According to the GSO, core inflation in April went down 0.15% month-on-month, resulting in an increase of 2.71% year-on-year and a rise of 2.96% in the first four months compared to the same period of 2019.