CPI inches up during August

On aggregate, the CPI was up 5.04 percent over the same period last year.

Nguyen Duc Thang, Director of the GSO’s CPI Department, attributed the increase after two consecutive months of decline was due to the hike in world petroleum and gas prices or 10 percent and 8 percent respectively.

The healthcare and medical sector saw the highest increase of 5.44 percent, followed by housing and building materials, (up 2 percent), and transportation services, (up 1.07 percent) on the effects of the petroleum price hike.

The only decrease was experienced by the foodstuffs and restaurant services sector, down 0.47 percent because of abundant supply and a bumper harvest in the Red River and Mekong Delta. This would reduce purchasing power as the items accounted for 40 percent of the CPI basket.

Month-on-month price increases, ranging from 0.35 percent to 1 percent, were recorded for the sectors of beverage and cigarettes, garments and textiles, footwear, household goods and entertainment.

The gold price rose 0.41 percent while the price of the US Dollar decreased 0.15 percent over last month.

Thang said the CPI would continue to surge as the country came into a peak period of consumption, with the advent of the mid-autumn festival, new school year and Christmas.

 “However, the increase would not be high, driving the year-on-year CPI at 6-7 percent as set by the Government, he said.

Petrol price hike

Nguyen Tien Thoa, head of the Finance Ministry’s Price Management Department, said the ministry on August 23 received proposals to increase retail petroleum prices from two businesses, Dong Thap Petroleum Trading Company ad Petec Trading and Investment Corporation.

The highest rise was VND1,200 (5.7 cents) per liter of petrol and VND700-800 (a round 3.3 cents) per liter of oil.

The proposal followed a rise in world oil prices, which had caused the businesses to suffer losses.