Recently-released macroeconomic report of Bao Viet Securities Joint Stock Co (BVSC) forecasted Vietnam’s consumer price index (CPI) in August will increase again after consecutive falls in June and July.
BVSC said that the CPI in August will be pressure to increase slightly due to two main commodity groups namely transportation and medical services. Decision to increase the gasoline price by 900 dong/litre (equivalent to 4.3%) from August 1 will make CPI increase by 0.4%.
In addition, from August 1, 10 provinces and cities and five central hospitals applying new prices for 447 health services with the adjustment of 75-100 percent of the ceiling price will also make the prices of medicine and medical services in the CPI basket increase strongly.
Expected commodity groups to curb the CPI rise will probably be group of housing, construction materials and food and foodstuff.
As forecasted by BVSC, CPI in August will be likely to rise about 0.2-0.4%. But for the whole year, BVSC lowered this year inflation forecast to 5-6 percent instead of 5.5-6.5 percent in its report in June.