July’s CPI records lowest increase over six years

Vietnam’s consumer price index (CPI) in July went up by only 0.06 percent over the previous month, the lowest level for the seventh month of a year since 2004 and the lowest rise so far this year.

According to the General Statistics Office, with this slight fluctuation, the CPI for the past seven months rose 4.84 percent over December 2009 and 8.67 percent against the same period in 2009.

Fruits for sale in the Mekong Delta (Photo: SGGP)

For the first time, July’s CPI increased in only eight out of 11 groups of commodities.

The most significant increase was seen in drinks and tobacco, generating 0.41 percent, followed by household goods and appliances, up 0.39 percent. Meanwhile textiles, garments and shoes posted an increase of 0.35 percent.

The prices of educational products and services rose by only 0.11 percent despite crowded college and university entrance exams in July.

Catering and related services saw a 0.21 percent increase, while, food dropped by 0.97 percent, exerting a dramatic impact on the CPI’s decline.

Other sharp declines were found in transport, with 0.94 percent, housing and construction materials, down 0.47 percent, and post and telecoms, 0.07 percent.

The low CPI in July is attributed to bumper rice crops and the drops in the prices of rice, petrol and oil in local market.

Another factor is the slight fluctuation in the CPI in the two economic hubs, with HCM City down by 0.09 percent and Hanoi up by 0.25 percent against June.

However, experts have warned that the storm season is coming with many unforeseen difficulties ahead, so there may be an imbalance between demand and supply, leading to a surge in prices.

Major cities, especially Hanoi and HCM City, are urged to continue their efforts to stabilise the prices of eight essential goods, while the government needs to proceed with flexible measures to manage the macro-economy, according to experts.

In July, gold prices on the market went up by 2.15 percent from June, and by 35.86 percent against the same period in 2009.

Meanwhile, the US dollar price rose 0.38 percent against June and 5.04 percent against the same period last year after commercial banks raised their deposit interest rates and boosted the purchase of the currency.

Source: Vietnam News Agency, General Statistics Office

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