Vietnam consumer prices up 0.59% m/m in October

This resulted in an increase of 2.48% year-on-year of the CPI in the first ten months of 2019, the lowest growth rate for a ten-month period over the last three years.

Vietnam’s consumer price index (CPI) saw an increase of 0.59% in October against the previous month, up 2.79% versus the end of 2018 and 2.24% year-on-year, according to the General Statistics Office (GSO). 

 

This resulted in an increase of 2.48% year-on-year of  the CPI in the first ten months of 2019, the lowest growth rate for a ten-month period over the last three years. 

The rise in the education services and oil prices, as well as the impact of African swine fever directly led to a higher CPI in October, stated the GSO.

Ten out of 11 commodity groups, which are components of the basket for CPI calculation, witnessed month-on-month hikes in prices. Among them, food and catering services posted the sharpest increase of 1.04%.

Other groups that saw their prices increase were transportation (0.99%), mainly due to two petroleum price hikes on October 1 and October 16; housing, water and electricity supply, and construction materials (0.53%); education (0.19%); culture, entertainment, and tourism (0.12%); household equipment and appliances (0.09%); garment, footwear and hats (0.06%); beverages and cigarettes (0.04%); medicine and healthcare services (0.04%); other goods and services (0.17%). 

The only group that saw its price down in October was post and telecommunications with 0.06%.  

According to the GSO, core inflation in October picked up 0.15% month-on-month, resulting in an increase of 1.99% year-on-year on average in the January – October period, leading to a rise of 1.92% in the first ten months compared to the same period of 2018. 

Previously, experts said under favorable conditions, it is feasible for Vietnam to tame inflation at below 4% as targeted in 2019, citing the CPI below 4% and the core inflation rate of under 2% over the past few years as reason. 

Deputy Prime Minister Vuong Dinh Hue has recently said that the government will keep inflation at 3.3%-3.9% this year.

The Vietnam Institute for Economic and Policy Research (VEPR) in its latest annual economic report said the rate is likely to reach 3.5%. 

In 2018, the CPI increased by 3.54% against 2017, below the target of 4% set by the National Assembly.