Consumer price index (CPI) in July has gone up in two major cities - Hanoi and Ho Chi Minh City. The main cause of this phenomenon comes from the increased gasoline prices. In one month, gasoline prices have been adjusted 3 times, making CPI rebound in July. Overall, CPI rose by 0.27 percent in July compared to June and increased by 7.29 percent compared to July 2012. In the first 7 months of 2013, the CPI increased by 6.81 percent over the same period in 2012. According to representatives of the Ministry of Finance, petrol price hike on July 17 will push up CPI by 0.1 percent in August.
According to the General Statistics Office, the two major cities of Hanoi and Ho Chi Minh City after 3 months of deflation and one month going up slightly, in July 2013, CPI has increased dramatically, this is the highest increase compared to the previous 5 months. It is determined to be the direct impact of the recent oil and gasoline price increases.
According to the General Statistics Office, the two major cities of Hanoi and Ho Chi Minh City after 3 months of deflation and one month going up slightly, in July 2013, CPI has increased dramatically, this is the highest increase compared to the previous 5 months. It is determined to be the direct impact of the recent oil and gasoline price increases.
Hanoi Statistics Office said that 11 goods baskets affected by petrol price hike index on June 28 had the strongest impact on the transport group, with an increase of one percent. Petrol price hike in July could lead to an increase in the prices of a range of goods and services in the coming period. Currently many taxi companies in Hanoi are considering a price hike in order to avoid bankruptcy and losses. Also, in the wholesale market, food prices began rising.
Mr Vu Vinh Phu, Chairman of the Hanoi Supermarket Association, said that the recent petrol price hike certainly affects commodity prices because it will make increase production costs. Some items prices will increase some will refrain to increase, but they will increase quickly. In this circumstance, companies increasing or not increasing prices will face losses This fact will cause delays both producers and distributors. Meanwhile, electricity prices are likely to rise. This is a concern for both producers and consumers in the near future.
Along with the adjustable gas prices in the early July with an increase by 13,000 VND / 12-kg bottle and oil prices increase by 300VND/ litre at the end of June, Hanoi welcomed a large number of candidates and people coming for the university and college exams, which made the index for housing, electricity, water, fuel and building materials increase by 0.66 percent. In the CPI basket, only telecommunications group decreased by 0.14 percent.
Thus, in July, with 10/11 groups having increased prices, Hanoi's CPI rose 0.22 percent compared to the previous month. Average consumer price index in 7 months in the area has increased by 1.96 percent and 5.75 percent over the same period.
In Ho Chi Minh City, commodity prices in July rose 0.17 percent compared to June. If compared to the same period last year, the increase was 3.54 percent and 0.96 percent compared to December 2012. Rising oil prices have led to the highest increase (1.3 percent) in transportation and telecommunication groups. Culture and entertainment, textiles, labour footwear and hats groups ranged from 0.13 to 0.4 percent. Goods catering services increased slightly by 0.11 percent.
Unlike Hanoi market, in July, Ho Chi Minh city has 5 commodity groups having decreased prices, including the groups that booming in Hanoi such as electricity, water, fuel and building materials, pharmaceutical and medical services, telecommunications and education whose prices decreased by 0.01 - 0.4 percent. Other groups of goods and services fell 0.93 percent.
In addition, two items not included in the overall index of Hanoi and Ho Chi Minh City are gold and the U.S. dollar which have unpredictable prices of decreasing by 6 percent and increasing by 0.63 - 0.79 percent respectively compared to the previous month.
According to Mr Nguyen Ngoc Tuyen, Director of the Institute of Financial Economics, from now until the end of the year, CPI is likely to rise due to many factors, including that the Government makes some adjustments in prices of health services, electricity, and gasoline. Especially in September, spending on education will rise and makes CPI increase as in previous years.
Thus, in the two consecutive months, two leading economies of the country have seen a sharp rise in price again, mainly due to higher gasoline prices. It is expected that in the coming months, the power factor prices, petroleum, commodity prices are seen to be affected by adjusted medical and education fees in localities, CPI in the last months will likely continue to rise.
Si Son
Vietnamese
