Vietnam’s August CPI rise lower than previous years

26-Aug-2014 Intellasia | VnEconomy | 6:00 AM Print This Post

General Statistical Office (GSO) has lately announced the country’s consumer price index (CPI) in August with a month on month rise of 022 percent and a year-on-year rise of 4.31 percent.

Thus, after the first eight months of the year, the country’s CPI rose by 1.84 percent on year, marking the lowest rise in the past five years.

This month CPI rise equalling to that of the previous month was a surprise to many people because in August of recent three years, the CPI rise had been always high, even at nearly 1 percent from the previous month. However, this year, price fluctuation had a big difference compared to the previous years.

In previous years, the CPI was significantly affected by the state-managed commodities such as school fee (in 2011) or health care service (in 2012 and 2013), this year, these factors only had minimal impact on CPI.

For example, the impact of the education group this year was only equal to one sixth of that in 2011 and the impact of the health care service group was even equal to one twenty-fifth of that in 2012 and equal to one eighteenth of that in 2013.

As ever analysed, the impact of the state-managed commodities on the CPI was just for the moment, so when localities have basically adjusted up almost aforementioned services, its impact on the CPI is not much.

Thus, the CPI in August 2014 was less affected by the non-market factors.

The group of outside eating and catering services posted the strongest rise in the month, at 0.45 percent from the previous month, of which, food up 0.45 percent, foodstuff up 0.54 percent and outside eating up 0.16 percent.

After falling for five consecutive months, the price of food group bounced back when receiving good signs from rice export to major markets such as the Philippines or Malaysia.

Meanwhile, the price of foodstuff group still continued to keep the upward trend from the previous month.

Group of apparel, hat and footwear posted the second biggest rise at 0.32 percent month on month.

On the down side, the continuous falls of gas import price helped the local retail price fall by 12,000 dong/12kg cylinder since early last month, which was the major reason helping the group of housing, construction materials, electricity, tap-water and fuel drop 0.31 percent month on month.

Also, thanks to the downward trend of the world petroleum price, the local petroleum retail price was adjusted down twice in the month, helping the CPI of the transport group fall slightly 0.02 percent month on month.

In month, the prices of gold and US dollar saw a similar fluctuation when together, falling from the previous month, by 0.34 percent and 0.26 percent respectively.


Category: Economy

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