Social Affairs
Vietnam’s ten-month inflation hit three-year high
Vietnam’s consumer price index (CPI) hit three year high of 3.71 percent in the first ten months of the year, however, it remains below the 4 percent annual target.
According to the General Statistics Office (GSO), CPI in October rose 0.41 per cent month-on-month, bringing the index for the last 10 months rose 3.71 year-on-year. It was up 2.25 percent from December 2016.
Core inflation in October rose 0.06 per cent from the previous month and 1.32 per cent from a year ago while ten-month inflation increased by 1.44 per cent year on year, lower than the projected figure of 1.6 to 1.8 per cent, proving that the monetary policy has been carried out effectively, GSO noted.
However, it warned, the inflation rate could rise in the last two months of the year on the rapid increase in demand for goods and services and on increasing credit issuance and investment to push up the country’s economic growth.
In October, all 11 major commodity groups posted growth compared to nine of those groups making gains in September.
Medicines and healthcare services recorded the highest growth rate of 2.14 per cent as seven provinces and cities under direct management of the central government, including Ha Noi, HCM City and Da Nang, raised healthcare service charges towards patients without health insurance. Charges were increased by private clinical centers in the central highland provinces of Kon Tum and Gia Lai.
The price indices for food and foodstuff were up 0.37 per cent and 0.57 per cent, respectively, due to heavy damages from storms and floods to the farming conditions of northern mountainous and central provinces, and high demand for food products during the wedding season.
Among other groups that saw price indices rise were housing and construction material (0.63 per cent), transportation (0.61 per cent) and food stores and restaurants (0.31 per cent).
Some groups that posted declines in CPI included electricity, sand, gold and pork.
The price of pork was down 0.95 per cent in October as consumers worried about the quality of meat products after local media reported nearly 4,000 pigs were injected with tranquilizer and sold on the market.
Storms and rain during October also reduced power consumption, cutting electricity prices by 0.24 per cent. Meanwhile, sand prices fell by 5 to 15 per cent across the country as some southern provinces allowed sand mines to be re-opened and demand of construction sand declined due to the rainy season./.
Core inflation in October rose 0.06 per cent from the previous month and 1.32 per cent from a year ago while ten-month inflation increased by 1.44 per cent year on year, lower than the projected figure of 1.6 to 1.8 per cent, proving that the monetary policy has been carried out effectively, GSO noted.
Medicines and healthcare services recorded the highest growth rate of 2.14 per cent due to service charge hike towards patients without health insurance in seven cities and provinces.
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In October, all 11 major commodity groups posted growth compared to nine of those groups making gains in September.
Medicines and healthcare services recorded the highest growth rate of 2.14 per cent as seven provinces and cities under direct management of the central government, including Ha Noi, HCM City and Da Nang, raised healthcare service charges towards patients without health insurance. Charges were increased by private clinical centers in the central highland provinces of Kon Tum and Gia Lai.
The price indices for food and foodstuff were up 0.37 per cent and 0.57 per cent, respectively, due to heavy damages from storms and floods to the farming conditions of northern mountainous and central provinces, and high demand for food products during the wedding season.
Among other groups that saw price indices rise were housing and construction material (0.63 per cent), transportation (0.61 per cent) and food stores and restaurants (0.31 per cent).
Some groups that posted declines in CPI included electricity, sand, gold and pork.
The price of pork was down 0.95 per cent in October as consumers worried about the quality of meat products after local media reported nearly 4,000 pigs were injected with tranquilizer and sold on the market.
Storms and rain during October also reduced power consumption, cutting electricity prices by 0.24 per cent. Meanwhile, sand prices fell by 5 to 15 per cent across the country as some southern provinces allowed sand mines to be re-opened and demand of construction sand declined due to the rainy season./.
