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Nov 30, 2020 / 17:13

Vietnam’s cost of living falls in November after 5 months of rise

Core inflation rose 2.43% year-on-year in the first eleven months of 2020.

After five consecutive months of rise, Vietnam's consumer price index (CPI), the main gauge of inflation, in November dipped by 0.11% against October, but was up 0.08% versus the end of 2019 and 1.48% year-on-year, according to the General Statistics Office (GSO). 

 The CPI in the first eleven months of this year increased by 3.51% year-on-year. Photo: Hai Linh. 

Declines in prices of petroleum products and electricity and water demand during the rainy season led to a contraction of the CPI in November, stated the GSO.

Overall, the CPI in the first eleven months of this year increased by 3.51% year-on-year.

Transportation, telecommunications and tourism are among commodity groups that witnessed month-on-month price hikes. Specifically, transportation posted the sharpest decline of 0.47%, mainly due to the fall of petroleum prices on October 27 and November 11, subtracting 0.05 percentage points from the overall growth of CPI.

Meanwhile, prices of post and telecommunications declined by 0.17% in November, and culture, entertainment, and tourism 0.06%;

Groups that saw their prices increase in November were garment, footwear and hats, as people look to buy more clothes for the coming winter, as well as housing, water and electricity supply, and construction materials; beverages and cigarettes;  food and catering services, among others.

According to the GSO, core inflation in November went up 0.03% month-on-month, resulting in an increase of 1.61% year-on-year and a rise of 2.43% in the January–November period compared to the same period of 2019.

Domestic gold prices continued the declining trend due to impacts from the US presidential election and positive developments of the Covid-19 vaccine research.

In November, gold prices increased 0.87% month-on-month, 32.04% against last December and 31.57% year-on-year.