CPI Jumps up far beyond Initial Target

Vietnam’s consumer price index (CPI) in December is estimated to increase by two times higher than last month’s growth rate, at 0.8 per cent on-month, bringing the inflation index for the whole year to 8.4 per cent, reported the General Statistics Office (GSO).

 

This year’s CPI, thus, goes far beyond the initial target, which the National Assembly set at 6.5 per cent early this year.

 

In comparison with 2000, the CPI surged by 29.5 per cent, the GSO said.

 

In December, of the ten groups of products surveyed to calculate the index, nine rose by between 0.2 per cent and 1.4 per cent on-month and only one fell.

 

The prices of food and foodstuff recorded the highest rise at 1.4 per cent, which is attributed to the increasing demand for goods amid the upcoming Lunar New Year Festival. Separately, food prices soared by 1.7 per cent and foodstuff prices by 1.2 per cent.

 

Meanwhile, the prices of services hiked by 0.7 per cent; garments and textiles-hat-footwear, housing and construction materials, and equipment-home appliances by 0.6 per cent, drinks and cigarettes by 0.5 per cent, educational products by 0.4 per cent, medicines and health care services by 0.3 per cent and cultural-sport-entertainment services by 0.2 per cent.

 

Transport charges and postal service fees decreased 1.1 per cent.

 

The GSO reported that the northern province of Thai Nguyen registered the highest increase in CPI with 1.4 per cent in the period, followed by the central province of Binh Dinh with 1.3 per cent.

 

The gold price in the country hit its record high for the year, surged 11.3 per cent on-year due to rising prices of bullion in the world market.

 

Meanwhile the price of the US dollar increased by 0.1 per cent on-month and by 0.9 per cent on-year.

 

The index rise of 8.4 per cent this year has also surpassed what the Trade Ministry has forecast, which is estimated at 8 per cent for the whole year.

 

Last year, the index hovered at an extremely high rate of 9.5 per cent.