Vietnam - Consumers hit again as CPI rises in August

The country’s consumer price index (CPI) in August rose 0.63 per cent after dropping for two consecutive months.

The General Statistics Office (GSO) reported on August 24 th that the index has increased to 5.04 per cent year on year and 2.86 per cent against December 2011. The country’s CPI in the last eight months has now risen 10.41 per cent against the same period last year.

Head of the GSO’s Price Department Nguyen Duc Thang said that the August rise in CPI is due to rises in the prices of oil, gas and electricity, and especially medical services in many cities and provinces.

In addition, the looser monetary policy and lower lending interest rates have increased the amount of money being injected into the economy, which in turn has boosted consumer spending.

Nine out of the 11 groups of commodities calculated for CPI have seen price rises of between 0.24 per cent and 5.44 per cent. Medicines and healthcare services experienced the highest rise, at 5.44 per cent, while beverages and tobacco saw the lowest increase, 0.24 per cent.

The cost of dining out and catering services fell by 0.18 per cent while post and telecommunications services witnessed a slight drop of 0.01 per cent.

Economic analysts have forecast that the nation’s CPI will rise slightly in September due to a hike in global oil prices and a rise in domestic consumption, as the month includes national holidays and the beginning of the new school year.

The Deputy Director of Vietnam’s Central Institute for Economic Management, Vo Tri Thanh, said that this year, the country’s inflation rate will reach 7-8 per cent and possibly even 9.9 per cent if there is unexpected rise in the CPI.

VIR/VNA

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