Vietnam’s consumer price index (CPI) rose by 0.37 percent in October, the General Statistics Office announced October 23.
The country’s two major cities experienced a lower increase than the country’s average, with Ho Chi Minh City’s CPI rising 0.15 percent, and Hanoi’s rising 0.26 percent, it said.
Meanwhile, some central cities and provinces, including Thua Thien-Hue, Khanh Hoa, and Danang had a higher rate of growth than the average.
Thua Thien-Hue’s CPI rose 0.95 percent, while Danang’s rose 0.91 percent compared to last month.
The CPI in the first 10 months surged 7.17 percent year on year. It rose 0.62 percent last month.
In related news, the price of gold in Vietnam surged VND40,000 a tael on October 23 as the global price was $US1,061 an ounce.
The metal was traded at VND23.94 million a tael, fetching VND651,000-781,000 a tael higher than the global price.
Experts said that bullion may plunge next week as the SPDR Gold Trust, the biggest gold-backed exchange-traded fund, sold 1.22 metric tons on October 21.
The Central Bank of Russia also said that it would sell 45 metric tons by the end of this month.
However, according to the World Gold Council, the ETF bought 38.5 metric tons, sending its holdings to 1,732.5 metric tons in the third quarter.
The Ho Chi Minh City People’s Committee has proposed Prime Minister Nguyen Tan Dung instruct the State Bank of Vietnam to increase gold supply for the domestic market in order to deal with the unusual movements of the precious metal.
It asked the Government to replenish the quota for bullion producing units and apply a reasonable exchange rate policy between the Vietnamese dong and the US dollar.
It also asked the Prime Minister to order authorities to prevent investors and gold traders from speculating and cornering the market.