Vietnam CPI surges 1.86% in November

Vietnam consumer price index (CPI) in November is estimated to have surged 1.86% from October, the highest increase level from February, the General Statistics Office said.

November increase has expanded the CPI rise of 9.58% in the first 11 months of the year and 11.09% year-on-year, driven by higher prices of education and food and construction sectors.

CPI increased 8.96% compared with the average of the same period in 2009. Experts said with such high CPI increases, the possibility of keeping inflation at single-digit level in 2010 is slight.

In November alone, as many as 10 out of the 11 baskets of goods contributed to the calculation of the CPI data saw their prices rise from 0.23-3.45% this month. Only costs of post and telecom services continued to decrease by 0.03%, GSO said.

The highest percentage price increase was seen in food and restaurants service, up 3.45% from October and 12.46% from December, including food (+6.02%), food stuff (+3.27%).

House and construction materials prices jumped 1.74% on month due to higher prices of steel and cement, partly due to higher imported steel ingot.

After two months of large increases, educational services lagged in November with the lowest rise of 0.23%.

GSO Pricing Department chief, Nguyen Duc Thang, blamed the dizzying rise of foods and food-related service prices on serious losses caused by natural disasters.

Mr. Thang said despite big cities such as Hanoi and Ho Chi Minh City carrying out measures to stabilize prices, the CPI in these cities still increased sharply due to high demand and low supply, 1.93% in Hanoi and 1.73% in HCM City, pulling up the country’s CPI.

Hai Phong City posted a highest CPI surge of 2.24% from October.

Earlier, CPI of two biggest cities of Vietnam also posted a high increase. Ho Chi Minh and Hanoi CPI saw an increase of 1.73% and 1.93% on month, respectively.

In November, gold and USD prices on the black market saw many fluctuations. The gold price in November rose by 8.67% over October and 36.24% over the same month last year.

The USD price in November increased by 3% over October and 10.03% over the same period last year.

By Bao Van, translated by Quoc Thoi

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