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Vietnam: CPI increases by just 1.84 per cent in 11 months

HÀ NỘI — CPI increased by just 1.84 per cent in 11 months of 2021 from the same period last year, making it the smallest increase since 2016, according to the General Statistics Office (GSO).

The main contributor to an increased CPI was rising petrol prices. Since November 2020, petrol prices increased by 30.32 per cent, which resulted in an increase of 1.09 per cent in CPI.

In addition, gas price has been on the rise. Since November 2020, it has increased by 25.34 per cent and contributed to a 0.37 per cent increase in CPI.

Rice price has increased in anticipation of the upcoming Tết holiday and higher demand due to stockpiling during the recent lockdown. Construction materials including cement, steel and sand have also been reported to have seen an uptick in price.

Educational services in November have increased by 2.44 per cent year-on-year. However, this has been expected as the new government-mandated pricing started earlier this year. Gold price increased by 2.65 per cent.

On the other hand, foodstuff prices decreased by 0.52 per cent in November, notably pork (-9.62 per cent) and chicken (-0.51 per cent). Government support packages, which included discounts on electricity bills for residents under lockdown, were implemented during the second quarter of the year. Price for airline tickets decreased by 21.39 per cent year-on-year and tour packages by 2.42 per cent.

According to the GSO, inflation in November has seen an increase of 0.11 per cent from the previous month, bringing the year’s average so far to a 0.82 per cent increase year-on-year, the lowest inflation recorded since 2011.

Nguyễn Bích Lâm, former head of the GSO, said price for petrol, rice and foodstuff will likely rise from now until the Tết holiday. As people tend to fix up their homes before Tết, construction materials will also be in high demand and likely see an increase in price, driving CPI slightly up. However, this year’s CPI will likely top around 2 per cent, much lower than the 4 per cent target. — VNS